GIGADEVICE Semiconductor (03986.HK) shares collapsed for a second straight session Monday, extending losses to nearly 30% since Friday as cornerstone investor lock-up shares became tradable. Turnover surged to HKD 2.1 billion on July 13, with 3.1 million shares changing hands, as early investors exited positions.
GIGADEVICE Semiconductor (03986.HK) plunged as much as 10% to HKD 669 Monday, extending a two-day decline to nearly 30% after cornerstone investor lock-up shares became tradable.
The stock fell for a second consecutive session following a 21% drop on Friday, with turnover reaching HKD 2.1 billion on 3.1 million shares traded, exchange data show. The volume surge reflected the unlocking of early investor positions that had been restricted since the company's listing on the Hong Kong Stock Exchange.
Short selling data as of July 10 showed HKD 239.6 million in short interest, representing a 3.2% short ratio. The lock-up expiry created an immediate supply overhang that overwhelmed demand, as cornerstone investors moved to monetize their holdings after the mandatory holding period ended.
The nearly 30% decline in two sessions marks a sharp reversal for the Beijing-based chipmaker, which specializes in microcontrollers and NOR flash memory. The selloff in GIGADEVICE shares contrasts with the broader Hang Seng Tech Index, which held relatively steady during the same period, suggesting the pressure is company-specific rather than sector-wide.
Lock-up expirations often trigger concentrated selling as early backers — including private equity firms, strategic investors, and institutional funds — reduce or exit positions they have held since the IPO. The magnitude of the two-day decline, combined with the elevated turnover, indicates that multiple cornerstone holders may have been selling simultaneously rather than staggering their exits.
With cornerstone holders now able to trade freely, further selling pressure may persist as remaining locked-up shares continue to hit the market. The stock's next support level will be tested in the coming sessions, and investors will watch for any stabilization signals or company announcements regarding the selling activity.
This article is for informational purposes only and does not constitute investment advice.
