{"id":28269,"date":"2023-04-28T18:45:36","date_gmt":"2023-04-28T18:45:36","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/chinese-small-cap-stocks-surge\/"},"modified":"2023-04-28T18:46:31","modified_gmt":"2023-04-28T18:46:31","slug":"chinese-small-cap-stocks-surge","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/chinese-small-cap-stocks-surge\/","title":{"rendered":"Chinese small-cap stocks surge in meme-like rally"},"content":{"rendered":"

By Chibuike Oguh and Bansari Mayur Kamdar<\/p>\n

NEW YORK (Reuters) – The U.S.-listed shares of small and micro-cap Chinese firms soared on Friday, reminiscent of meme-like rallies last summer that were underpinned by strong demand from retail investors.<\/p>\n

So-called meme rallies are unusual share price gains, driven by social media sites patronized by individual traders. <\/p>\n

Online brokerage firm Top Financial Group Ltd spiked 645% to $149 per share in afternoon trading on Friday, continuing the trajectory recorded during premarket trading and giving the company a market capitalization of about $5 billion.<\/p>\n

The stock had nearly tripled to $20 per share in regular hours on Thursday and closed at a total market value of $701 million. <\/p>\n

Magic Empire Global Ltd, a provider of financial advisory and underwriting services, jumped 328% to $3.97 per share. It had closed at $0.93, shedding 7.2%, with a market capitalization of $18.8 million during regular market hours on Thursday.<\/p>\n

Both Top Financial and Magic Empire are currently two of the most watched stocks on Stocktwits, a website that is popular among retail investors. Magic Empire was the third-most traded stock by retail investors as of 1 p.m. ET (1700 GMT), according data tracked by J.P. Morgan Chase.<\/p>\n

Top KingWin Ltd, a provider of consulting and advisory services, gained 39%, and U Power Ltd, which is launching automated battery-swapping stations for electric vehicles in China, is up 20%. Both firms listed on the Nasdaq last week after pricing their respective initial public offerings.<\/p>\n

“These are the latest in a years-long pattern of dozens of Nasdaq-listed companies being used by offshore scammers to run pump and dump schemes,” said Nathan Anderson, founder of short selling firm Hindenburg Research.\u00a0<\/p>\n

\u00a0\u00a0 “Nasdaq should be halting these tickers, but the exchange instead seems content to collect listing fees through brazen fraud operating in broad daylight,” Anderson added.<\/p>\n

A Nasdaq spokesperson declined to comment.<\/p>\n

Nasdaq, however, had in October halted IPO preparations of at least four small Chinese companies while it was investigating short-lived stock rallies of such firms following their debuts, and along with the non-governmental securities body\u00a0Financial Industry Regulatory Authority (FINRA) in November warned about a heightened threat of fraud involving small-cap IPOs, driven partly by a social media-driven pump-and-dump scheme called “pig butchering.”<\/p>\n

\n

(Reporting by Chibuike Oguh in New York and Bansari Mayur Kamdar in Bengaluru; Additional reporting by Medha Singh and John McCrank; Editing by Lance Tupper, Sharon Singleton and Josie Kao)<\/p>\n

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By Chibuike Oguh and Bansari Mayur Kamdar NEW YORK (Reuters) – The U.S.-listed shares of small and micro-cap Chinese firms soared on Friday, reminiscent of meme-like rallies last summer that were underpinned by strong demand from retail investors. So-called meme rallies are unusual share price gains, driven by social media sites patronized by individual traders. […]<\/p>\n","protected":false},"author":8,"featured_media":28270,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-28269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3R0X9-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/28269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=28269"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/28269\/revisions"}],"predecessor-version":[{"id":28271,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/28269\/revisions\/28271"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/28270"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=28269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=28269"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=28269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}