Fenglong Co.'s stock surged to 90.48 yuan on January 22, extending a dramatic run of consecutive daily limit-up moves to 17 trading sessions. The rally has attracted intense scrutiny after the company’s shares spent 15 trading days at limit-up between December 25, 2025 and January 21, 2026 and repeatedly triggered trading-anomaly warnings during that period.
On an investor-interaction platform the company sought to blunt one of the narratives behind the rally: it declared that Shenzhen-based robotics and AI firm Ubtech (Shenzhen Youbixuan Technology Co., Ltd.) has no plan in the next 36 months to pursue a backdoor listing via Fenglong, and no asset-restructuring or injection is planned in the next 12 months. Fenglong also said its production and operations have not materially changed and that it does not expect its core business to shift significantly in the coming year.
Despite those explicit denials, Fenglong's stock continued to climb, prompting the issuer to warn investors that the price had “seriously deviated” from fundamentals and that the rapid gains had accumulated substantial trading risk. The company signalled that, if the price continued to behave abnormally, it might apply to the Shenzhen Stock Exchange for a trading suspension to allow for an investigation.
The episode highlights persistent dynamics in China's equity markets: retail-driven, momentum-led rallies around thematic “concept” stories — in this case the perceived connection to an AI/robotics name — can persist even in the face of official denials. Chinese exchanges and issuers have increasingly intervened with announcements and trading halts in recent years to manage market disorder, but such measures are blunt instruments against a tide of speculative retail flows.
For investors the message is twofold. Short term, prices that have risen through a long string of daily limit-ups can reverse quickly, particularly once a company flags the disconnect with fundamentals or the exchange steps in. Strategically, the case underlines the difficulty of pricing small- and mid-cap names in markets where rumors, social-media narratives and momentum chasing can overwhelm conventional corporate disclosures.
Regulators and market operators will watch closely. Further unusual moves could trigger formal probes by the Shenzhen Stock Exchange or China's securities authorities; those actions would aim to curb irrational speculation and protect retail investors, but they also risk amplifying volatility when they are announced. In the meantime, Fenglong's public denial about Ubtech should temper some merger-and-acquisition conjecture, yet the persistence of the rally demonstrates how quickly corporate communications can be overtaken by market sentiment.