Victory Giant Technology (SEHK: 02476) saw its shares plummet 5.15% during intraday trading on Wednesday, as the stock gave back some of its recent gains amid ongoing company-specific and market headwinds.

The decline follows a sharp 12% rebound in the prior session, which was driven by the company's announcement of a 7 billion yuan employee stock ownership plan. Today's sell-off represents typical profit-taking behavior after such a rapid recovery. The broader negative sentiment continues to be influenced by the fallout from the so-called "elevator gate" scandal involving Chairman Chen Tao, whose personal life was publicly exposed earlier this month, creating reputational overhang for the company.

Adding to the pressure, market attention was drawn to the departure of star fund manager Lei Tao from Debang Fund, who stepped down from managing all his public fund products. Victory Giant Technology was a notable holding in Lei Tao's flagship Debang Semiconductor Industry Fund. While the fund manager cited personal reasons for his exit, market speculation links it to a prior regulatory breach involving improper marketing cooperation. The stock has been a relative underperformer in his portfolio this year, gaining less than 20% compared to some holdings that have doubled.

These negative factors appear to have outweighed the positive catalyst from JPMorgan, which initiated coverage on Victory Giant Technology with an "Overweight" rating and a HK$600 price target just before the market opened, citing optimism about global PCB demand driven by AI and the company's competitive advantages.