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Tianhan Shares Plummet Near Limit Down After 11-Day Rally Stalls
Electronic Technology · Computer Peripherals · economic_daily · 2026-08-25
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Shares of Tianhan, which recently surged on an 11-day winning streak, reversed sharply today as extended regulatory trading curbs triggered heavy selling pressure.
What Happened
Extreme Price Volatility: After a remarkable rally that saw 10 consecutive limit-up sessions since August 11, Tianhan shares hit an 11th limit-up at 78.2 TWD before abruptly reversing. The stock plunged during intraday trading to a low of 64.5 TWD, a drop of 9.28%, nearing the daily limit-down floor of 64 TWD.
Extended Regulatory Curbs: Due to excessive price volatility, the Taiwan Stock Exchange has extended the company's trading restrictions until August 31. Under these measures, the stock is subject to a 25-minute call auction mechanism intended to cool down speculative trading activity.
Weak Financial Fundamentals: Despite a short-term surge of 182% in share price, the company's financial performance remains poor. Tianhan reported a net loss of 11.2 million TWD for July, translating to a loss of 0.4 TWD per share, highlighting a significant disconnect between market valuation and earnings.
Market Correction Risks: The sudden reversal reflects growing profit-taking sentiment among investors amid the extended regulatory oversight. Market participants are advised to exercise caution regarding the stock's high volatility and the potential for further corrections during the ongoing disposal period.