Yonyou Network stock volatility amid Deep Seek buzz

Yonyou Network Technology (SSE:600588) has announced that its stock experienced abnormal trading fluctuations, triggering an inquiry from the Shanghai Stock Exchange. The company's stock price rose significantly over three consecutive trading days in mid-February, prompting the exchange to deem the activity unusual. The surge coincided with speculative interest surrounding Deep Seek, an open-source large language model. While Yonyou has incorporated Deep Seek into some of its products, the company clarified that it has no formal service agreement with Deep Seek and that the integration has no significant impact on its core business. It also confirmed that it does not hold shares in Hangzhou Depthseeker AI, the developer of Deep Seek. Yonyou's controlling shareholder and actual controller confirmed they have no activities that required disclosure and have not traded the company's stock during this period. Yonyou also reiterated its earlier projection of a net loss for 2024 and cautioned investors regarding potential trading risks, urging them to make informed decisions.