Chifeng Gold's stock plummeted 5.78% during intraday trading on Monday, reflecting a sharp decline in investor sentiment.

The sell-off followed the company's approval to issue additional H-shares under a special authorization, a move that raises concerns about potential share dilution and has weighed heavily on the market. Concurrently, the broader gold sector experienced widespread selling pressure, contributing to the downward momentum for Chifeng Gold and its peers.

Despite the company reporting strong fundamental performance with significant year-over-year growth in both revenue and net profit for the first quarter, these positive results were overshadowed by the immediate negative impact of the proposed share issuance and the weak sector environment.