Second-largest shareholder announces massive share reduction plan, Zongshen Power's stock price plunges more than 7%

Why is the second-largest shareholder reducing their holdings during the asset swap period?

Reporter: Yan Fengfeng   
Editor: Wu Yongjiu

Amid nearly an eightfold surge in stock price and high-level fluctuations, Zongshen Power saw its second-largest shareholder announce a plan to reduce holdings by up to 3%. The market responded with a “vote with their feet,” and on March 17, the company’s stock closed down more than 7%.

On the evening of March 16, 2026, Zongshen Power issued an announcement that its second-largest shareholder, Tibet Guolong Trading Services Co., Ltd., holding more than 5% of shares, plans to reduce no more than 34,351,800 shares, representing 3% of the total share capital, within three months after 15 trading days from the date of this announcement. The reduction will be via block trades of no more than 2% of shares and centralized bidding of no more than 1%. Based on the March 17 closing price of 20.57 yuan per share, this 3% stake is valued at approximately 707 million yuan.

Notably, this reduction coincides with a critical period when the company, under the same actual controller, Longxin General, is planning a major asset swap to resolve industry competition. On one side is an internal asset restructuring aimed at optimizing core business and enhancing competitiveness; on the other side is a major shareholder cashing out at a high point. The combination has prompted the market to reassess the company.

See the full article: Second-largest shareholder plans a large-scale reduction, Zongshen Power’s stock drops over 7%! Major asset swap shows no significant progress yet

Daily Economic News