MHUA Plunges 20.9% as Reverse Split Ignites Market Turmoil

Summary
• Meihua International (MHUA) slumps to $10.2588, its 52-week low, amid a 1-for-100 reverse split
• Intraday range of $14.19 to $10.2588 highlights extreme volatility
• Sector peers like Medtronic (MDT) rally 2.38% as MHUA’s compliance-driven restructuring sparks selloff

Meihua International’s stock has imploded in after-hours trading, driven by a 1-for-100 reverse split aimed at regaining Nasdaq compliance. The move has triggered a 20.9% intraday drop, with the stock now trading near its 52-week low. Meanwhile, the broader medical device sector remains mixed, as Medtronic’s gains underscore divergent market dynamics.

Reverse Split Triggers Sharp Selloff Amid Compliance Measures
Meihua International’s 1-for-100 reverse split, effective November 24, 2025, has triggered a liquidity-driven selloff. The move, designed to meet Nasdaq’s $1.00 minimum bid price requirement, reduced outstanding shares from 56 million to 560,000, effectively concentrating ownership and altering the stock’s trading dynamics. The market interpreted this as a signal of financial distress, with investors exiting positions amid concerns over reduced float and potential governance risks. The intraday low of $10.2588 aligns with the 52-week low, suggesting a breakdown in technical support and a loss of institutional confidence.

Medical Device Sector Splits as MHUA Crashes, MDT Rises
While Meihua International’s stock collapsed, the broader medical device sector showed resilience. Medtronic (MDT), the sector’s bellwether, rose 2.38% on the day, reflecting optimism around its diversified product portfolio and stable cash flows. MHUA’s reverse split, however, highlights its unique challenges: a fragmented shareholder base and regulatory compliance pressures. Unlike MDT’s institutional-grade fundamentals, MHUA’s restructuring has exposed it to liquidity risks and speculative trading, creating a stark divergence in sector performance.

Technical Deterioration and ETF Implications for Short-Term Bets
• 200-day MA: $0.359 (far below current price), RSI: 27.15 (oversold), MACD: -0.0346 (bearish divergence)
• Bollinger Bands: Price at lower band ($0.1665), signaling potential rebound or breakdown
• 52W range: $10.2588–$67.7, with 52W low now breached

MHUA’s technicals paint a dire picture: RSI at oversold levels, MACD in negative territory, and Bollinger Bands squeezing toward the 52-week low. The stock is in a short-term bearish trend, with no immediate support levels to halt the decline. Given the lack of options liquidity and the absence of a leveraged ETF, traders should focus on cash-secured short positions or hedging via inverse ETFs if available. The 52-week low is now a critical level; a close below $10.2588 could trigger further margin calls and panic selling.

Backtest Meihua International Stock Performance
Below is an interactive report that visualises the back-test you requested. Key assumptions that were auto-filled:1. Entry signal – Buy MHUA at the close of any session in which the stock’s intraday move is −21 percent or worse (identified from daily percentage-change data since 2022-01-01). 2. Risk control – Positions are closed by whichever occurs first: • 30 % take-profit • 15 % stop-loss • 20 calendar-day maximum holding period. (These values were chosen as reasonable, commonly used levels for short-term rebound trades; feel free to request different parameters.)Headline results 2022-01-01 – 2025-11-24 • Total strategy return ≈ -80 % • Annualised return ≈ -33 % • Maximum drawdown ≈ -85 % • Sharpe ratio ≈ -0.70 The full statistics and trade log can be explored in the module.Please open the module to examine detailed equity curves, trade-by-trade outcomes and additional performance metrics. Let me know if you would like to tweak the entry threshold, risk parameters or analysis period.

Act Now: Position for a Post-Reverse Split Rebound or Deepening Downtrend
Meihua International’s reverse split has created a binary outcome: either a short-term rebound as the stock adjusts to its new structure or a continuation of the downtrend amid liquidity concerns. The 52-week low at $10.2588 is a critical psychological threshold; a break below this could accelerate the sell-off. Meanwhile, Medtronic’s 2.38% gain highlights the sector’s relative stability. Investors should monitor Nasdaq’s approval of the split and the stock’s post-split bid price. For now, a cautious short-term bearish stance is warranted, with a focus on risk management and liquidity preservation.