Shanghai Stock Exchange Intervenes: Suspends Trading for Certain Investors in Shangwei New Materials

On the evening of August 5, the Shanghai Stock Exchange (SSE) released a statement regarding the abnormal fluctuations in the stock price of Shangwei New Materials (688585), a company that has recently experienced significant price volatility. The SSE emphasized that the company had already issued multiple risk warning announcements, urging investors to be cautious and pay attention to the investment risks involved.

According to the SSE, the stock price of Shangwei New Materials has continued to fluctuate sharply in recent days, and some investors have engaged in abnormal trading activities that disrupt the normal order of the market and mislead other investors in making trading decisions. As a result, the SSE has taken regulatory measures, suspending the trading accounts of the involved investors in accordance with the rules.

The SSE also reiterated its warning to all investors to be mindful of the risks and to engage in transactions in a compliant manner.

On the same evening, Shangwei New Materials issued a statement, revealing that the company's stock price had surged by 1320.05% from July 9 to August 5, 2025, with the stock repeatedly hitting thresholds for abnormal and severe abnormal fluctuations. The company noted that if the stock price continues to rise, it may apply for a continuous trading suspension for further investigation. However, the company emphasized that no significant changes in its fundamentals have occurred, and the current stock price has significantly deviated from the company's actual performance.

Additionally, the company reported a decline in its net profit for the first half of 2025 compared to the same period last year, and its price-to-earnings ratio is now significantly higher than the industry average.

Following the recent trading suspension, Shangwei New Materials' stock price has continued its upward trajectory. On August 5, the stock closed at 110.48 yuan per share, with a total market capitalization of 445.6 billion yuan, marking an annual increase of 1566.62%. The stock reached a 10-fold increase on July 28, with a cumulative rise of 1095.81% at that time. It then advanced to a 15-fold increase in just three trading days.

Public information indicates that Shangwei New Materials is a global supplier of environmentally friendly, corrosion-resistant resins, with business operations spanning environmental high-performance corrosion-resistant materials, wind turbine blade materials, new composite materials, and circular economy materials. Since its listing in 2020, the company's financial performance has been unstable, and its stock price has remained relatively flat, making it a relatively obscure stock in the chemical industry.

The sudden surge in Shangwei New Materials' stock price was triggered by an event that occurred on the evening of July 8, when the operating entity and core team of Zhiyuan Robotics planned to acquire at least 63.62% of the company's shares, becoming the controlling shareholder. This acquisition was viewed as a landmark case of new quality productive enterprises entering the A-share market and also the first acquisition case involving embodied intelligence enterprises on the STAR Market.

The SSE's intervention comes as a response to the extreme volatility and the potential for market manipulation, sending a clear signal to investors to act responsibly and in compliance with the regulations. As the market continues to watch the situation closely, the long-term impact of these developments on Shangwei New Materials and the broader market remains to be seen.