How Is China’s Market Being Impacted By Penny Stocks?
Penny stocks are becoming an even bigger focus for Chinese investors. Just like it was four years ago, China’s bull market is seeing penny stocks join in on the action. At the start of 2019, shares that were valued at less than 2 yuan or about 30 cents have jumped 40 percent on average according to Bloomberg data. Meanwhile, the Shanghai Composite Index has moved up by roughly 24%.
Penny stocks also outperformed China’s benchmark from its 2015 boom as well. Retail investors poured money into the red-hot market this year. This was a show of strength and favorable outlook on the Chinese market. Among the nearly 50 penny stocks to buy that were tracked is a textile equipment maker named Shanghai Zhogyida Co. The stock has moved up by more than 130% this year along. This is also even as the company received a “special treatment” designation after reporting consecutive losses on an annual basis.
Which Chinese Penny Stocks Performed Best?
Shanghai Zhongyida was even at risk of getting delisted from the exchange and had trouble disclosing its 2018 results. This was according to a March 1 statement by Cinda Securities Co. The main business of Shanghai Zhongyida had come to a halt. S
Another penny stock that has climbed significantly this year in China has also been CPT Technology Group Co. Shares of this Chinese penny stock have jumped by nearly 140% in 2019. This is also in light of its own troubles this year. During the beginning of the year, the company, which makes electronic components, said that it would post a loss of as much as 5.5 billion Yuan for the 2018 year.
Similar to the previously mentioned Chinese penny stocks, another big winner this year has been Nanjing Huadong Electronics Information & Technology Co., which has broken out by as much as 118% this year.