Lianhe Chemical Technology Co Ltd Faces Significant Market Challenges

On June 11, 2025, Lianhe Chemical Technology Co Ltd (002250), a prominent chemicals manufacturer listed on the Shenzhen Stock Exchange, experienced a significant sell-off. The company’s main shareholders sold off a net amount of 8.86 billion CNH, resulting in a 10% drop in share price. This marked a substantial outflow, with the net flow ratio standing at -7.18%, ranking 5098 out of 5150 in the market.

Market Context and Sector Performance

The broader market saw mixed performance on the same day, with the Shanghai Composite Index rising by 0.52% and the Shenzhen Component Index increasing by 0.83%. However, the overall market turnover was 1.26 trillion CNH, a decrease of 1,599 billion CNH from the previous trading day. Despite this, sectors such as securities, automotive parts, and small metals saw significant inflows, with securities alone attracting 29.53 billion CNH.

Lianhe’s Position Among Peers

Lianhe Chemical Technology was the top net seller among individual stocks, with a net sell-off of 8.60 billion CNH. This was followed by Zhongke Shuguang, which saw a net sell-off of 4.78 billion CNH. In contrast, Nyingxiang Stone was the top net buyer, with a net purchase of 17.36 billion CNH, and Dongfang Wealth followed with 8.21 billion CNH.

Impact on High-Flying Stocks

The sell-off at Lianhe Chemical Technology contributed to a broader trend of high-flying stocks experiencing declines. On June 11, several high-profile stocks, including Yong’an Pharmaceutical, Junyao Health, Liren Cosmetics, and Lianhe Chemical Technology, hit their daily price limits. Other stocks such as Shangwei Group, Zhongchao Group, Jinshi Technology, Baili Electric, and Youfu Group also saw significant declines.

Sector-Specific Trends

The CRO (Contract Research Organization) concept also faced downward pressure, with Lianhe Chemical Technology hitting its daily price limit. Other companies in the sector, such as Wanbang Pharmaceutical, Hehua Group, Hanyou Pharmaceutical, Ruizhi Pharmaceutical, and Zhaoyan New Drug, experienced declines as well.

Investor Sentiment and Future Outlook

The sell-off at Lianhe Chemical Technology reflects a broader sentiment of caution among investors, particularly in the chemicals and pharmaceutical sectors. The company’s recent performance, coupled with sector-wide trends, suggests a challenging environment ahead. Investors are advised to monitor developments closely, as the market dynamics continue to evolve.

Company Overview

Lianhe Chemical Technology Co., Ltd., headquartered in Taizhou, China, is engaged in the production of agricultural chemicals, medicines, and functional chemicals. The company operates both domestically and internationally, with its IPO date on June 19, 2008. As of June 9, 2025, the company’s closing price was 14.8 CNH, with a 52-week high of 15.49 CNH and a low of 4.41 CNH. The market capitalization stood at 10.91 billion CNH, with a price-to-earnings ratio of 68.14.

For more information, visit Lianhe Chemical Technology’s website .