Bloomberg: This Chinese Stock Soared 4,500% on Nasdaq and No One Knows Why
Shares of Wins Finance Holdings Inc., a company that guarantees loans for small businesses in China and leases equipment to them, have soared as much as 4,555 percent since debuting on Nasdaq in 2015. The firm’s market value surpassed $9 billion in February, about four times as much as LendingClub Corp., an online lender with 50 times the revenue. Even Wins said in a release that it had no idea what drove the surge in its stock, which boasts the best performance in the Nasdaq Composite Index over the past 12 months.
...Wins had operating revenue of $9.8 million in the fiscal year that ended in June and does about two-thirds of its business in Jinzhong, a city in Shanxi province, a coal mining center, according to its most recent annual report. That was a drop of 34 percent from the previous year.