GigaCloud Technology Inc's stock plummeted 7.65% during Tuesday's intraday trading session following the company's announcement of a significant change in its independent auditor.

The e-commerce solutions provider disclosed that its audit committee has appointed Grant Thornton LLP as its new independent registered public accounting firm, replacing its previous auditor KPMG Huazhen LLP. The company filed a Form 8-K reporting the auditor change, which typically signals a significant corporate governance event.

Auditor changes, particularly when a company dismisses its existing auditor, often trigger market anxiety as they may indicate potential accounting disagreements, financial reporting issues, or increased regulatory scrutiny. Investors reacted negatively to the news, leading to the sharp decline in GigaCloud's share price during the trading session.