Nasdaq announced a trading halt for Charming Medical Limited (MCTA) on November 26, 2025, after the company’s shares had been suspended by the SEC from November 12 to November 25. The Nasdaq pause is a regulatory safeguard that will remain in place until the company provides the additional information requested by the exchange.
The SEC’s order cited potential market manipulation involving social‑media‑based recommendations that may have artificially inflated MCTA’s price and volume. Nasdaq’s request for further details focuses on the company’s disclosure of any material events, financial statements, and internal controls that could affect the integrity of its trading activity.
Charming Medical, a Hong Kong‑listed provider of Traditional Chinese Medicine‑inspired wellness and beauty products, completed its Nasdaq IPO on October 21, 2025. The company raised approximately $7.36 million, with proceeds earmarked for business expansion, strategic investments, research and development, and working capital.
Financially, MCTA’s valuation remains high: a price‑to‑earnings ratio of 413.45 and a price‑to‑sales ratio of 79.77. Revenue growth has been flat over the past three years, while operating margins remain robust. The combination of stagnant top line and lofty multiples signals a potential overvaluation relative to peers.
The trading halt underscores heightened scrutiny of MCTA’s governance and reporting practices. While the company has not yet provided the requested information, the regulatory action signals that investors and regulators are closely monitoring its compliance and market conduct. The event may influence future investor confidence and could prompt additional oversight or remedial measures.
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