CATL's stock plummeted 5.14% during intraday trading on Thursday.
The decline followed the company's announcement that it plans to reduce its holdings in Hunan Yuneng by up to 3% of total share capital within the next three months via centralized bidding and block trades. If fully executed, the divestment could exceed RMB 2 billion. CATL first invested in Hunan Yuneng through a capital increase in December 2020, accumulating unrealized gains of over 23 times.
Additionally, CATL's A-share saw institutional net selling of RMB 6.4 million in block trades, adding short-term pressure on market sentiment.