Background of the Company

Wuzhou Special Paper Group Co Ltd (ticker: 605007) is a Chinese firm listed on the Shanghai Stock Exchange. As of 25 December 2025 its share price closed at 15.61 CNH, which is also the 52‑week high. The company’s market capitalization is 6.75 billion CNH, and its price‑earnings ratio is 30.32.

Abnormal Trading Activity (23–25 December 2025)

On 23, 24 and 25 December 2025 the company’s shares experienced a cumulative price‑deviation of 20 % from the expected range, a figure that triggers the Shanghai Stock Exchange’s abnormal‑fluctuation rules. The board confirmed that:

  • The company’s production and operations were normal; market conditions and industry policy had not changed materially.
  • No material information that should have been disclosed has been omitted.
  • There is no indication of asset restructuring, share issuance, major transactions, or other events that could justify the price movement.

Accordingly, the company attributes the sharp price swings to a possible “over‑heated” market sentiment and urges investors to exercise caution.

Market‑Wide Context

During the same period the broader A‑share market recorded a high number of limit‑up and limit‑down trades.

  • On 26 December 2025 the Shanghai Composite Index recorded a 0.1 % rise, the Shenzhen Component Index gained 0.54 %, and the ChiNext Index increased 0.14 %.
  • 82 shares hit the upper limit and 20 fell to the lower limit, giving a 80 % limit‑up rate.
  • Notable limit‑up performers included companies in the aerospace, lithium‑battery, and paper sectors.
  • Several firms in the iron‑ore and lithium‑battery chains were among the top gainers, while the computing‑hardware sector experienced declines.

The market environment was characterized by rapid sector rotation, with sectors such as Hainan free‑trade, lithium‑battery, and paper showing heightened activity, whereas the paper sector fell in relative strength during early trading but gained momentum later in the day.

Impact of Yuan Appreciation

On 25 December 2025 the offshore yuan crossed the 7.0 per‑US‑dollar threshold, reaching 6.9965, while the onshore yuan strengthened concurrently. The appreciation reduces the cost of imported raw materials for firms that rely heavily on foreign inputs.

  • The paper industry, including Wuzhou Special Paper Group, benefits from lower purchasing costs for pulp and other imported components.
  • Several paper‑industry stocks, including Wuzhou Special Paper Group, saw limit‑up trading on 25 December, a move attributed in part to the currency effect.

No direct statement from the company confirms a change in strategy; however, the timing suggests that the currency environment may have contributed to the observed price volatility.

Summary

  • Wuzhou Special Paper Group’s shares registered abnormal volatility over three consecutive days in late December 2025, totaling a 20 % deviation from the expected trading range.
  • The board’s investigation found no material changes in operations or undisclosed information; the volatility is attributed to heightened market sentiment.
  • The broader market experienced widespread limit‑up activity, with the paper sector gaining traction amid a surge in yuan value.
  • Currency appreciation likely lowered import costs for the paper industry, providing a backdrop for the price movement observed in Wuzhou Special Paper Group’s shares.