Shengu Group (601091.SS) extended an exceptional rally on its second trading day, closing at 57.77 yuan after reaching an intraday high of 82.59 yuan. The stock, listed on the Shanghai Stock Exchange main board on Sept. 17 at an IPO price of 4.39 yuan, gained 1,215.9% from its issue price by the Sept. 18 close. The Shanghai Stock Exchange said certain investors had engaged in abnormal trading that disrupted market order and imposed self-regulatory measures including trading suspensions on relevant accounts. Shengu Group also warned that its valuation was well above industry averages, volatility and turnover were elevated, and a sharp correction was possible after the rapid advance. Its Sept. 18 static P/E ratio was 242.96 times and its P/B ratio was 26.06 times, compared with industry averages of 41.74 times and 3.50 times, respectively. The company’s projected 2026 earnings also point to pressure, with first-nine-month net profit expected to fall 8.13% to 23.83% year on year and full-year profit projected to decline 10.75% to 15.34%.