The memory chip sector hit a circuit-breaker selloff wave, and Zhaoyi Innovation responded: This round of stock price corrections is closely linked to moves in overseas markets

July 13 — “Memory king” Zhaoyi Innovation hit the daily limit down. As of the close, the stock traded at 550.8 yuan per share, down more than 30% from June 30, with a total market value of 386.4 billion yuan. Notably, on the same day, the storage chip sector that Zhaoyi Innovation belongs to also saw a collective plunge: as of the close, Shannong Chuang sank to the daily limit down in the 20cm segment, while multiple popular high-liquidity stocks including Taiji Industry, Demingli, and Shen Keji all hit the daily limit down in the 10cm segment. In response, a staff member who answered the phone for Zhaoyi Innovation said that this round of stock price adjustment is more strongly correlated with overseas market moves. “Now the extent of the company’s stock price decline is about the same as SK hynix; so far it’s basically all down more than 30%. We’re all in memory; when prices rose before, the trend was also pretty much the same.” As for market concerns about the company’s business, the staff member said, “The earnings forecast is the most persuasive proof about our performance.”