Yiming Food (605179.SS) and Elegant Home-Tech (603221.SS), two of the hottest momentum stocks in China’s A-share market, warned on August 18 that they may apply for trading halts pending review if their share prices continue to rise abnormally. Both companies said current valuations have severely diverged from fundamentals and carry irrational speculation risks. Yiming Food said the cumulative deviation in its closing price over 28 consecutive trading sessions from July 10 to August 18 exceeded 200%, with a cumulative gain of 202.82% and five separate abnormal-fluctuation notices. Its price-to-earnings ratio stood at 288.3 times versus an industry average of 25.79, while its price-to-book ratio was 13.45 times versus 2.64 for the industry. The company said operations remain normal and fundamentals have not materially changed, while also pointing to a relatively small external free float as a factor behind the speculative risk. Elegant Home-Tech said its stock hit the daily limit-up in 12 sessions from July 21 to August 18, rising 214.8% to 30 yuan, leaving it at a static P/E ratio of 423.11 times compared with an industry average of 28.99. The company said the share price severely deviates from fundamentals and highlighted further uncertainty around its planned cash acquisition of at least 77.08% of Oukangnuo, which values the target at no more than 650 million yuan. Elegant Home-Tech also forecast a first-half 2026 net loss attributable to shareholders of 34.5 million yuan to 40.5 million yuan. The paired warnings underscore growing efforts by listed Chinese companies to flag valuation and trading risks before regulators step in, as analysts say neither company’s sector has seen industry-wide catalysts sufficient to justify such outsized gains.