Cambridge Industries Group (CIG) saw its stock price plummet by 7.38% during Monday's intraday trading session, marking a significant decline for the Hong Kong-listed company.

The sharp drop follows the stock's recent addition to the list of eligible short-selling targets on the Hong Kong Stock Exchange, with increased short-selling activity putting downward pressure on the share price. Additionally, the company announced a placement of 15.6 million new H-shares at a discount of approximately 8.88% to the previous closing price, raising net proceeds of around HKD 1.967 billion, with the dilutive effect of this discounted placement continuing to weigh on investor sentiment.

The decline also reflects intensified profit-taking pressure after the stock had rallied more than 20% cumulatively in recent sessions, driven by strong AI-related optical module demand. This sharp run-up has triggered technical correction forces as investors unwind positions following the substantial gains.