VNET Group (NASDAQ: VNET) saw its stock price tumble 5.03% in pre-market trading on Friday, as concerns mount over its major shareholder, CSFG-NEW (HKG: 00412). The drop comes amid a turbulent period for CSFG-NEW, which owns a 42% stake in VNET Group.

CSFG-NEW, a key overseas investment platform of Shandong Hi-Speed Group, has been experiencing dramatic stock price fluctuations. After a meteoric rise of over 200% in just three months, CSFG-NEW's stock price plummeted by more than 55% in a single day. This sharp decline followed a notice from the Hong Kong Securities and Futures Commission (SFC) regarding high shareholding concentration in the company.

The SFC's report revealed that as of September 1, 2025, 92.46% of CSFG-NEW's issued shares were held by just 22 shareholders, raising concerns about the stock's liquidity and potential market manipulation. While CSFG-NEW has stated that it complies with public float requirements, the market reaction has been decidedly negative. This turmoil surrounding VNET Group's largest shareholder appears to be spilling over, affecting investor confidence in VNET itself and contributing to its pre-market decline.