Zijin Gold International's stock plummeted 10.95% during intraday trading on Friday, reflecting significant investor unease.

The sharp decline follows the company's agreement to a $4 billion cash takeover of Canada's Allied Gold, a deal announced earlier in the week. This acquisition is part of a larger trend where Chinese gold miners have spent approximately $9 billion on overseas assets in the past 12 months, according to data from Dealogic.

While gold prices have surged recently, breaking the $5,000 per troy ounce mark, analysts highlight that Chinese miners like Zijin are often acquiring assets deemed too risky or uneconomic by international peers. This strategy exposes the company to heightened political, social, and environmental risks, as well as vulnerability to a potential downturn in gold prices, which has sparked investor concerns about the acquisition's long-term viability and financial risk.