This Chinese concept brokerage stock has gone crazy.
On March 1st, the stock price of Haichuan Securities, a Chinese concept securities firm, surged significantly, with the highest intraday increase of 186%. As of the close, it rose 96.92%, with a transaction volume of 208 million US dollars, closing at 2.56 US dollars per share, and a total market value of 510 million US dollars.
On Friday local time, the S&P 500 index and Nasdaq hit new historical highs. The S&P 500 index closed above 5100 for the first time. The market continues to pay attention to the US stock market financial reports and the prospect of interest rate cuts by the Federal Reserve. The data shows that the manufacturing industry in the United States further declined in February, and the weak consumer confidence index at the University of Michigan strengthened market expectations for a rate cut in June.
Haichuan Securities surged 96.92%
It is understood that Haichuan Securities, whose stock price has surged by 96.92%, is a Chinese listed securities and financial institution in the United States.
According to the official website of Haichuan Securities, it was founded in Beijing on June 1, 2015 and submitted its registration and issuance documents to the US Securities Regulatory Commission on June 1, 2018. Haichuan was listed on the NASDAQ main board market in January 2019, with the stock code "MTC".
It is reported that Haichuan Securities was formerly known as "Meimei Securities". In 2016, Meimei Securities Co., Ltd. acquired Whitewood Securities Company, an established American brokerage firm founded in 1937. It is a senior member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC) in the United States. The company's main business includes securities brokerage, placement and underwriting, as well as providing investment consulting.
In 2020, the company renamed its Chinese brand name "Meimei Securities" to "Haichuan Securities". At the same time, the management of the company stated that while retaining its original business foundation, it will actively carry out overseas securities private equity fund custody, fund investment manager incubation, and main brokerage business. In addition, Haichuan Securities will also invest its core business in more diversified markets. While steadily developing its existing market, it will actively expand its services to the North American and Hong Kong markets, creating more investment opportunities for more domestic and foreign enterprises and investors.
Financial data shows that as of June 30, 2023, Haichuan Securities had a revenue of 2.8564 million US dollars in the first half of 2023, a year-on-year increase of 289.48%; Net profit was $-14377400, a year-on-year decrease of 397.97%.
From the historical stock price performance, the issue price of the stock was $4 per share. From June to July 2019, the company's stock price experienced a significant increase, with a historical peak of $19.55 per share. However, since then, the stock price has plummeted significantly, and since the end of 2021, the stock price has been below $1 per share for a long time.
Nasdaq and S&P hit new highs
On March 1st, the three major US stock indexes closed higher, with the Nasdaq and S&P hitting historic closing highs. As of the close, the Dow Jones Industrial Average rose 90.99 points to 39087.38 points, an increase of 0.23%; The S&P 500 index rose 40.81 points to close at 5137.08, an increase of 0.80%; The Nasdaq Composite Index rose 183.02 points to close at 16274.94, an increase of 1.14%.
Popular technology stocks rose generally, with Broadcom up over 7%, AMD up over 5%, setting a new historical closing high, Nvidia up 4%, closing market value reaching $2 trillion for the first time, Qualcomm up over 3%, and Meta up over 2%. Dell Technology's performance exceeded expectations, with its stock price soaring by over 31%, reaching a new closing high since its 2019 US IPO.
On the news front, the market continues to pay attention to the US stock market financial reports and the prospect of the Federal Reserve's interest rate cuts. The data shows that the manufacturing industry in the United States further declined in February, and the weak consumer confidence index at the University of Michigan strengthened market expectations for a rate cut in June.
The inflation data released on Thursday showed that, excluding food and energy, the personal consumption expenditure (PCE) price index in the United States rose 0.4% month on month in January, the largest increase in nearly a year, but in line with market expectations.
Vital Knowledge founder Adam Crisafulli stated in a research report that we still belong to the firm belief that inflation is declining and that the Federal Reserve will be forced to cut interest rates in June.
LPL Financial's Quincy Krosby said that for markets closely monitoring when the Federal Reserve will shift towards loose interest rates, this report will help restore confidence that the Fed will start cutting interest rates in 2024 not "yes", but "when".
However, there are also different sounds appearing. On March 1st, Torsten Slok, Chief Economist of US private equity giant Apollo Management, stated that the US economy has not slowed down, but is accelerating again, and inflation is starting to rebound, which will prevent the Federal Reserve from lowering interest rates in 2024.