We previously wrote about another recent Chinese meme stock, financial services incubator AMTD Digital ( HKD), whose shares soared from their IPO price of $7.80 in July to an astronomical $2,555. In a twist to last year's phenomenon, meme stock mania 2.0 appears to have a uniquely Chinese flavor and is centered on a group of little-known recently listed companies. Their only goal is to make some quick money, which many did before the inevitable happened and the stocks crashed. Such traders have little or no interest in any of these companies' actual business and don't really care if they are profitable or money-losing. Such stocks burst into the headlines last year when traders on the Reddit website managed to briefly bid up shares of laggards like game store operator GameStop ( GME) and theater operator AMC ( AMC) to meteoric heights. In fact, GigaCloud, which operates a business-to-business (B2B) e-commerce marketplace, appears to be the latest meme stock favored by day traders looking to make a quick buck. Such strong pricing is always a good indicator of strong investor demand, though it's unlikely anyone would have predicted the big jump that saw the stock close at $48.01 on its first trading day. The company sold IPO shares at $12.25, representing the upper end of their previously given range.
( NASDAQ: GCT), whose shares came roaring out of the gate with a 300% jump in their New York trading debut last Friday. Not e-commerce site GigaCloud Technology Inc. Who says U.S.-listed China stocks have become investor pariahs?
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