Sou Hu Cai Jing·2025-12-13 16:23Core Viewpoint - The sudden drop in stock price of China Metallurgical Group Corporation (China MCC) is attributed to the announcement of a significant asset sale, leading to a market reaction that interpreted the move as a desperate divestment of valuable assets [4][6]. Group 1: Stock Performance - On December 9, China MCC's stock price fell to 3.05 CNY, marking a 10.03% decline, with a trading volume of 23.94 billion CNY and a turnover rate of 4.36%, the highest for the year [1][2]. - The Hong Kong-listed shares of China MCC plummeted over 20%, closing at 1.88 HKD, resulting in a market value loss of billions [1][4]. Group 2: Asset Sale Announcement - China MCC announced a plan to sell 100% equity of its subsidiary, China MCC Real Estate, and other core assets for 606.76 billion CNY, with the transaction to be settled in cash [4][6]. - The company claims this move aligns with the central enterprise's strategy for professional integration, focusing on its metallurgical engineering core business [4]. Group 3: Investor Concerns - Investors expressed anger over the sale of high-quality assets, particularly the resource assets expected to generate a combined net profit of 1.209 billion CNY in 2024, with some assets showing an appreciation rate exceeding 180% [6]. - The real estate division's assets were sold at a significant discount, with a devaluation rate of 45.18%, raising questions about the fairness of the transaction [6]. - The company's financial performance is under pressure, with a reported 18.79% year-on-year revenue decline and a 41.88% drop in net profit for the third quarter of 2025 [6][11]. Group 4: Market Reaction - The market reaction was severe, with institutional investors and northbound funds selling off shares, leading to significant losses for new shareholders, including a social security fund that recently acquired shares at a higher price [9][11]. - The drastic decline in stock price has raised concerns about the company's future performance and whether this asset sale will lead to a recovery or further decline [13].