STOCKS | Zhenhua Technology Shares Fall 5.35% After Prior-Day Limit-Up

Zhenhua Technology’s shares fell sharply in morning trading on July 2, closing at 58.97 yuan per share at midday, down 5.35%. According to Jin10, the stock had hit its daily limit-up in the previous trading session after news that major MLCC industry players were raising prices. Responding to the MLCC price increases, Zhenhua Technology said the MLCC price hikes tied to AI servers were unrelated to the company’s core business. The company said the MLCC price increases discussed in the AI sector mainly involved large manufacturers with higher market share and were in the consumer products segment. Zhenhua Technology added that its MLCC business accounts for only a small portion of its operations and that it has not compiled statistics on it. The company said some of its products had indeed seen price increases due to higher raw material costs, but the magnitude was not as large as the market had assumed. It said it was also taking measures such as substituting raw materials and improving cost efficiency to address the impact of rising raw material prices.