VGT's stock price fell sharply by 7.65% at the market open on Monday, as investors reacted to news of a personal scandal involving the company's chairman and actual controller, Chen Tao.

The scandal, which involves allegations from a Douyin streamer regarding a relationship with Chen Tao, has raised significant concerns about corporate governance and shareholding stability. Investors fear that the situation could lead to a divorce and subsequent division of the couple's substantial equity stake, which accounts for approximately 27.5% of VGT's shares, potentially destabilizing the company.

Additionally, the lack of an official statement from VGT or Chen Tao has heightened anxiety among investors, with worries that the scandal could affect the company's reputation and its relationships with key clients like NVIDIA, which reportedly accounts for over 70% of orders. The incident has damaged the chairman's previously steady image, leading to a loss of investor confidence.