XIZHI TECH-P (01879.HK) experienced a significant decline of 5.22% during intraday trading on Wednesday.

The drop is attributed to the lingering negative impact from market rumors earlier this month concerning the company's directors' conduct and operational information. Although the company issued a clarification announcement on June 5, denied all allegations, reported the matter to law enforcement, and announced a share buyback plan of up to 10% of its issued H shares, investor confidence has not fully recovered. The stock has now fallen more than 36% from its recent high on June 3.

Further selling pressure came from broad weakness in the semiconductor sector, with several major industry peers also posting significant declines during the session, creating a negative market sentiment that amplified the sell-off in XIZHI TECH-P shares.