COSCO Shipping Energy's stock fell sharply by 5.44% during intraday trading on Monday, extending a multi-session decline.

The decline is attributed to a challenging environment in the oil shipping market. The sector is experiencing an overall oversupply during the industry off-season, with VLCC (Very Large Crude Carrier) cargo volumes for March through May plummeting 54% year-over-year. Furthermore, the lack of a substantive breakthrough in the Strait of Hormuz blockade has kept passage volumes at low levels. Investor sentiment was also dampened by the company's recent announcement of a RMB 10.18 billion capital increase to a subsidiary for constructing new tankers, alongside approximately RMB 8 billion in newbuilding lease contracts, raising concerns about future cash flow pressure.

Adding to the selling pressure, institutional investors have been reducing their stakes. Recent filings show JPMorgan and Bank of America have cut their positions in the company, signaling cautious sentiment among major holders.