Investors digging through a plethora of penny stocks certainly have quite a few intriguing options to choose from. Among the small-cap stocks gaining attention today are a range of U.S.-listed Chinese equities.
Currently,Puxin Limited(NYSE:NEW),Pop Culture Group(NASDAQ:CPOP) and Takung Art(NYSEMKT:TKAT) are all up impressively. These stocks have seen gains of 80%, 41.13% and 36.75% today.
What’s interesting about the outsized moves of all three companies is that these stocks don’t share many similarities. In fact, these businesses are quite different.
Puxin is a China-based private educational services company. Takung Art is a company focused on online contemporary art sales, and it has recently added NFTs to its mix. And Pop Culture Group is an entertainment hosting company based in China, also with (at least speculative) ties to the NFT space.
That said, each of these companies is generating a tremendous amount of attention from retail investors. Let’s dive into what’s driving these penny stocks today.
Chinese Penny Stocks Taking Off in End-of Year Rally
Puxin’s rather large 73% move appears to have a specific catalyst today. The company reported earnings, which came in much better than expected. Given the headwinds around the educational sector via a regulatory crackdown by the Chinese government, this is a big positive for investors.
The company reported revenue growth of 12.2%, much better than what many expected. This company did post a massive loss, but appears to be stabilizing, something investors like to see.
For Pop Culture Group and Takung, the story is less clear. The NFT market has been red-hot this year, although all things related to crypto have been cooling in recent weeks. It appears retail investors looking for moonshot bets are now focusing in on small-cap stocks. It just so happens these Chinese penny stocks are gaining significant attention.
Whether this momentum can be maintained remains to be seen. However, for now, these Chinese penny stocks certainly have some near-term momentum.
