‘AI’ stock price crash to reach $5.4bn, the highest ever, with no clear explanation
Posted On August 17, 2021
A Chinese company has suffered the worst loss in its history as it revealed it lost $5 billion in the stock market and that no one was at fault.
The Ai duponto hospital chain was the biggest casualty of the market rout, falling into administration on Friday after a massive $5bn loss, the latest in a series of losses the firm has suffered.
It said in a statement that the loss would take the total to $10.2bn.
“We are deeply saddened by the loss and our thoughts are with the families of the victims, their loved ones and their colleagues,” the statement said.
Shares of the Chinese healthcare and pharmaceutical giant plunged by more than 10 per cent on the news.
The Aisplatt Hospital and Medical Care company, which operates over 30 hospitals across China, said in its statement that it would be unable to pay its debts.
While there was no immediate explanation for the loss, Mr Wang added that it was a “serious” setback for the company and a “massive loss” for the financial market.
Ai duponte has been the victim of a series on Wall Street of Chinese companies falling into insolvency, particularly the $1.5bn-billion medical device maker, Suning, and its stake in social media giant Tencent.
Last month, Ais Platt also suffered a massive loss on its stock market listing, when its shares fell more than 15 per cent.
This latest loss is likely to hit Ais duponto even harder, as its $3.5 billion market value has dropped by $1bn.
In November, AIsplatt had also seen its stock value plunge as shares of the company fell by more then 20 per cent after it said it was taking a “major hit” to its business.
Analysts had forecast the company’s stock value to rise to $4.2 billion, but fell by another $1 billion when the company announced it was seeking $1 million in emergency funding.
Investors also took to social media sites to share their disappointment at the loss.
After the news broke on Friday, shares of Ais platt fell more then 7 per cent in early trading on the Shanghai Stock Exchange (FXB) to close at $1,932.90.
In addition to Ais, the Chinese pharmaceuticals company, Huazhong Biotech, also announced its losses on Friday.
The company, owned by the state-owned pharmaceutical firm, had reported a loss of nearly $1b, and said that it had been hit hard by the global economic slowdown and a reduction in demand for its medicines.
But it said its financial position was “strong and stable”.
“This is not the end for Ais Pharmaceuticals and the Ais family, the two families are continuing to carry out their mission with great confidence,” it said in the statement.
“The Aicont Hospital is the leading Chinese healthcare company in the world, and we are confident in the future of our businesses and our company.”