Biren Technology's stock plummeted 5.09% during morning trading, underperforming the broader market.

The sharp decline is attributed to mounting investor concerns ahead of a significant lock-up expiration. The controlling shareholder and over ten cornerstone investors, collectively holding shares worth approximately 38 billion Hong Kong dollars, will see their shares become tradeable on May 23. This imminent large-scale unlock is pressuring the stock.

Further dampening sentiment is the company's recent proposal for an H-share stock option plan and share incentive plan, announced on May 15, which has raised market fears over potential equity dilution. These dual headwinds have suppressed buying interest despite a brief technical rebound in the previous session following a strategic cooperation agreement.