Fosun International Ltd. plunged as much as 5% in Hong Kong trading, marking the steepest decline since October, after warning its annual loss could widen by up to fivefold. The Shanghai conglomerate expects a preliminary net loss between 21.5 billion yuan to 23.5 billion yuan ($3.1-$3.4 billion) for the year ended December 31, significantly worse than last year's 4.35 billion yuan deficit.

The widened loss stems from impairment charges on property projects and other assets as China's prolonged real estate downturn continues to squeeze conglomerates. Fosun, which maintains interests across property, finance, and healthcare sectors, faces mounting pressure from falling asset values in the country's struggling property market.

The dramatic decline in Fosun's stock reflects growing investor concern about the financial stability of Chinese conglomerates with significant property exposure. The company's situation mirrors broader challenges facing China's corporate sector amid the ongoing real estate crisis, with asset impairment becoming an increasingly common challenge for diversified business groups.