[Blue Technology Observation] On June 30th, a huge commotion occurred in the Hong Kong stock market, with the market cap of 200 billion yuan "AI unicorn" SenseTime (SenseTime-W 00020.HK) plummeting in a straight line during trading, dropping by over 45% by the closing of the day. The market cap shrank to 104.9 billion in just one day, with a closing price of 3.130 Hong Kong dollars. The total daily trading volume was 1.903 billion shares, with a total turnover of nearly 6.2 billion, and a turnover ratio of 5.68%.
As the self-proclaimed "number one AI stock" technology giant, SenseTime was included in the Hang Seng Tech Index and Hang Seng Composite Index in February this year. It indicates that the Hong Kong Stock Exchange has fully recognized the solid fundamentals (long-term maintenance of a high market cap) and active trading (good liquidity) of SenseTime, effectively endorsing the company. SenseTime has been maintaining a good stock price trend, but the significant reversal it faces at this moment seems to reflect the capital market's non-recognition of SenseTime's previous trillion-dollar valuation.
The stock price decline of the unlocked shares.
According to industry insiders' analysis, the sharp drop in SenseTime's stock price this time may be related to the massive stock unlocking by the company. Before the listing of SenseTime Technology, pre-IPO investors and cornerstone investors held 23.3 billion shares, accounting for nearly 70% of the company's previous total share capital, representing 3.1% of SenseTime Technology's actual total share capital, with a huge market cap and holding quantity.
Before the targeted issuance, investors such as SoftBank, Chunhua Capital, Yinhu Capital, IDG, Guotiao Fund, Shanghai International Group, Sailun, and Dinghui, well-known enterprises, were all cornerstone investors of SenseTime Technology.
Perhaps in order to stabilize confidence in the capital markets...