5‑Day Surge of ST雪发 Raises Questions About Market Integrity
The Shanghai‑listed entity Cedar Development Co., Ltd. (ticker 002485) has been the focal point of a dramatic 5‑day price rally that has left analysts perplexed. From 4 April to 4 July the stock hovered between a 52‑week low of CNY 2.35 and a peak of CNY 4.85. Yet on 4 Nov, 5 Nov, and 6 Nov the share price surged, closing at CNY 4.94 on the most recent day—well above its 2025‑11‑04 close of CNY 4.70 and its all‑time high.
The Numbers Behind the Surge
| Item | Value |
|---|---|
| Market cap | CNY 2.56 bn |
| P/E ratio | –15.89 (negative) |
| 2025‑Q3 revenue | CNY 5.59 bn |
| 2025‑Q3 net loss | CNY –45.71 m |
| 52‑week high | CNY 4.85 |
| 52‑week low | CNY 2.35 |
The negative earnings multiple and recent loss underline that the company is not in a period of robust profitability. Yet the price has rallied despite these fundamentals.
Regulatory Lens: “Abnormal Trading”
On 6 Nov, the Shenzhen Stock Exchange classified the 5‑day rally as “abnormal trading”, a designation that triggers a mandatory review. The company’s own announcement, repeated across multiple media outlets, asserts that:
- The business operations remain normal and the internal environment has not changed materially.
- No undisclosed material information exists that could affect the share price.
- The company remains legally and operationally separate from related parties such as Xuelong Industrial Group.
- The controlling shareholder has not traded the stock during the anomalous period.
These statements are unremarkable in their wording, yet they are insufficient to quell speculation that the rally is fueled by speculative trading rather than genuine investor confidence.
Market Context: An ST‑Stock Wildfire
The rally coincided with a broader heat‑wave in the “ST” sector. In the morning trade of 6 Nov, 57 stocks hit the upper limit while 11 fell. ST stocks such as ST中迪 and *ST宝鹰 were already on extended streaks, and ST雪发 joined them with a 5‑day limit‑price run.
Meanwhile, non‑ST sectors were largely flat or weak. The electric‑power equipment, coal, and tourism concepts, although trending, could not lift the market against the ST‑sector’s exuberance. The fact that ST雪发 is a textile‑apparel company—an industry not typically associated with explosive short‑term gains—makes the price action even more suspect.
The Critical Question
Given the company’s negative earnings, modest revenue, and the absence of any material disclosure, why would a rational investor be willing to buy at a 12‑plus % cumulative price deviation? The answer appears to lie not in fundamentals but in market sentiment, short‑term speculation, and possibly institutional momentum trading.
The company’s insistence that the internal environment remains “normal” and that related parties are “independent” reads like an attempt to pre‑empt accusations of manipulation. Yet, without a clear earnings turnaround or a new product launch, the price can only be justified by the buying pressure of speculative traders.
Conclusion
The 5‑day price run of ST雪发 illustrates a classic case of market over‑reaction. While the company’s statements may satisfy regulatory compliance, they do not address the underlying issue: a share price that has risen far beyond what its fundamentals warrant. Investors should remain cautious, as the absence of material events and the presence of an abnormal trading classification suggest that the rally is unsustainable. The stock’s future trajectory will likely hinge on whether genuine corporate value can be demonstrated—or whether the market will simply reset to a level that reflects the company’s true earnings reality.
