Drone-parts maker Jin Ming is being investigated over a military drone contract, and its shares have been hammered for two straight days — bad news for its shareholders.

• Prosecutors say Jin Ming and its subsidiary put banned Chinese chips and camera lenses into drones sold to Taiwan's military, then handed over fake paperwork on where the parts came from.
• The general manager has been detained and held without visitors; the chairman was released and is now covering his duties.
• Shares hit the daily down limit again, falling to NT$32.4 after locking limit-down the day before.
• The company says business is normal and points out drones are only a small slice of sales — metal stamping moulds make up most of its revenue, and defence orders are tiny.
• The wider Taiwan market was also ugly, with the index briefly dropping more than a thousand points and TSMC slipping below NT$2,500.

Outlook: Selling pressure on Jin Ming is likely to continue while the investigation runs, even though the contract itself is a minor part of its business.