$XTALPI(02228.HK) needs to hold on until June

The company issued zero-interest convertible bonds (over 2 billion)

Institutions take money to buy bonds

In the future, they can convert into shares at a price

Institutions are afraid the stock price will fall, and the bonds will also lose value

So they immediately short the underlying stock to hedge

Buy convertible bonds → lock in future returns

Simultaneously sell borrowed shares → hedge against downside risk

This is what everyone sees

Issue bonds → immediately massive short selling → stock price suppressed from rising