China Hongqiao's stock plummeted 5.02% during the intraday trading session, extending a period of significant selling pressure for the aluminum producer.

The sharp decline is primarily attributed to sustained market concerns over equity dilution following the company's announcement of a proposed convertible bond issuance. The plan to issue RMB-denominated, USD-settled convertible bonds exclusively to professional investors has triggered negative investor reaction due to the potential dilution effect on existing shareholders.

Despite the company's recent efforts to counter the selling pressure through a substantial share buyback and reporting strong year-on-year growth in Q1 net profit, these supportive measures have been outweighed by the immediate technical headwinds and dilution fears in the short term, leading to the continued bearish momentum.