A widely circulated "essay" on social networks led to a rapid surge in shares of Zhejiang Sanhua Intelligent Controls Co., Ltd. (SZ002050, stock price 42.83 RMB, market value 180.2 billion RMB) which hit the daily limit. The company's subsequent clarification announcement was seen as delayed, raising concerns among investors.

On October 15, rumors surfaced suggesting that Tesla had placed an order worth $685 million for Optimus linear actuators with the Chinese supplier, Zhejiang Sanhua.

In the afternoon of October 15, shares of Zhejiang Sanhua experienced a sharp increase and reached the daily limit by around 1:30 PM, trading at 44.18 RMB per share. By the close of trading, the highest order volume reached 485,000 hands, with a net capital inflow of 1.611 billion RMB, while large orders saw a net inflow of 2.017 billion RMB.

At approximately 10 PM on October 15, Zhejiang Sanhua released a clarification regarding the false rumors circulating in the market. The announcement stated that the company noticed numerous claims online about receiving large orders for robots and confirmed these rumors were untrue. Additionally, the company mentioned it had no significant matters that required disclosure and had not conducted any media interviews on that day.

However, many in the market expressed criticism regarding the company's late clarification, with some investors questioning why the company could not respond immediately regarding the substantial orders.

In response, on the morning of October 16, a relevant staff member at Zhejiang Sanhua explained that the rumors had been circulating several days prior, but they gained traction when shared by foreign social media, and subsequently, domestic media also began to disseminate them.

"There are many ‘small essays’ circulating in the market, and the company will not respond casually. If a response is to be made, it must go through internal review processes and comply with regulatory requirements," the staff member stated. The impact of the incident was indeed significant, prompting the company to clarify the misinformation, but the content of the clarification required communication with multiple parties to ensure compliance with relevant regulations.

On the morning of October 16, Zhejiang Sanhua opened at 42.00 RMB per share and subsequently climbed, trading at 43.50 RMB per share at the time of the report, reflecting a decline of 1.56% compared to the previous trading day's closing price.