Sumary of Why Daqo New Energy Stock Sank Today:
- What happened Shares of Daqo New Energy (NYSE:DQ) slumped roughly 14.7% today, according to data from S&P Global Market Intelligence.
- The Chinese solar energy materials stock gave up ground in conjunction with pricing moves for the company’s Xinjiang Daqo subsidiary, which had its initial public offering (IPO) on the Shanghai Stock Exchange (SSE) yesterday.
- Xinjiang Daqo’s share price skyrocketed roughly 184% in its first day of trading on the market, and Daqo New Energy stock surged roughly 20% in the session thanks to excitement surrounding the Shanghai listing.
- However, Daqo New Energy stock then pulled back in conjunction with pricing moves for its subsidiary.
- So what Many Chinese companies that list their stocks on U.S. exchanges have recently turned to listings on the Shanghai Stock Exchange and the Hong Kong Stock Exchange in order to raise capital and reduce exposure to risks from only being listed on foreign exchanges.
- Outside of raising fresh capital, the SSE listing for Xinjiang Daqo probably won’t have much of an impact on long-term Daqo New Energy shareholders.