Analysis of Reasons for Baize Medical (02609.HK) Being a Popular Hong Kong Stock and Its Risks

Baize Medical (02609.HK) is a Hong Kong-listed medical stock that has recently made it to the Hong Kong Stock Hot List. Key driving factors include: 1) Facing a 2.68% share lock-up expiration at the end of the year, with the stock price fluctuating around the IPO price [1]; 2) Green Economy (01315.HK) illegally sold all its holdings of Baize Medical shares in September, involving a major transaction but failing to comply with the listing rules for declaration and approval procedures [2][3]; 3) On December 11, the stock price fell to HK$4.3, a record low since listing, attracting investors’ attention [0][4].

From the perspective of price and trading volume, on December 11, 924,000 shares were traded with a turnover of HK$4.0475 million, and the active buy-sell ratio was 24:76, indicating a net active sell of funds [0][4]. As of the latest update, the stock price has rebounded to approximately HK$4.36, still at a relatively low level. Overall market sentiment is cautious, with investors focusing on the selling pressure after the lock-up expiration and the company’s fundamental support capacity.

1. Although the 2.68% lock-up expiration ratio is not high, when combined with the year-end timing and the background of record-low stock prices, it may amplify market concerns.
2. The institutional illegal share reduction incident exposes potential corporate governance risks, which may have a sustained negative impact on investor confidence, going beyond short-term stock price fluctuations.
3. The stock price has rebounded slightly near the record low of HK$4.3, indicating some support, but the short-term trend remains weak without positive catalysts.

1. Share lock-up expiration risk: Although the 2.68% lock-up expiration ratio is not high, when combined with the year-end timing and the background of record-low stock prices, it may amplify market concerns.
2. Corporate governance risk: The institutional illegal share reduction incident may affect investors’ trust in the company’s standardized operations [2][3].
3. Downward stock price risk: Without subsequent fundamental positive support, the stock price may continue to fluctuate at a low level or decline further [0][4].

1. Value investment opportunity: The current stock price is at a low level; if the company’s fundamentals are stable, it may attract the attention of value investors.
2. Potential for governance improvement: If the company properly handles the violation incident and strengthens governance, it is expected to restore market confidence.

Baize Medical (02609.HK) has become a Hong Kong stock focus due to share lock-up expiration, illegal share reduction, and record-low stock price. The latest stock price is approximately HK$4.36, with 924,000 shares traded on December 11 and a net active sell. Market sentiment is cautious, with the key support level being the record low of HK$4.3 since listing. Attention should be paid to the pressure from unlocked shares, governance risks, and changes in fundamentals; investors should make decisions based on their own risk preferences and the company’s long-term value.