SH ELECTRIC's stock price plummeted 5.07% during intraday trading, extending a period of decline for the heavy electrical equipment manufacturer.

The sharp drop is attributed to continued profit-taking pressure following a significant rally the stock experienced earlier in the month. That surge was driven by positive catalysts including a boom in the controlled nuclear fusion sector, a milestone for thorium-based molten salt reactors, and positive developments in its gas turbine business. As the sole domestic company covering all fourth-generation nuclear power technology routes, SH ELECTRIC had attracted substantial investor interest, leading to accumulated short-term gains that are now being unwound.

Market sentiment was also influenced by the company's recent announcement of transferring its 47.4% stake in subsidiary Electric Guoxuan to Nanjing Guoxuan Holdings for a nominal price of RMB 1, a move that has drawn divergent interpretations from investors. The overall heavy electrical equipment sector has remained soft, contributing to the downward pressure on the stock.