A few months ago, a tiny Chinese company (that trades on Nasdaq and is part of the Russell 2000) soared 4,500% and then crashed after Bloomberg reported on the 'surprisingly' strong debut. Well, it's happening again... Wins Finance Holdings has exploded 1000% in the last few days and nobody knows why.
No, this is not a Bitcoin-related entity... The company’s market value later tumbled by billions of dollars after Bloomberg reported in March on the mystery.
Last Thursday, the company was worth around $400 million.
On Wednesday, it had a market capitalization of more than $4 billion.
However, after the Chinese loan guarantor (not exactly the kind of business one would expect to be doing well amid record NPLs and a government crackdown on shadow-banking and financial leverage) soared 185% today (and 1000% in the last few days), Nasdaq drew the line, halting the stock demanding more information...
In a statement, the exchange said trading won’t resume until the company has “fully satisfied Nasdaq’s request for additional information.”
Bloomberg reached out to David Rudnick, an investor relations representative for Wins in New York
“We really don’t know what’s going on... I don’t know who would know” what information the exchange needs.
Wins also said in February that it couldn’t explain what had driven up its stock in the initial rally.