China’s Latest Meme Stock Craze Involves the Dragon Zodiac
- Ningbo Shenglong, Ningbo Tianlong rallied 200% in a month
- It is a risky bet to buy a stock because of the name: BI
The frenzy in dragon-related stocks comes at a time when Chinese equities are struggling amid concerns over the country’s economic recovery and geopolitical tension.
Photographer: Hector Retamal/AFP/Getty Images
It’s still three months away from the Year of the Dragon, but Chinese investors are already jumping into stocks carrying the name of the auspicious mythical creature.
Henan Taloph Pharmaceutical Stock Co. and Fujian Longxi Bearing Group Co. both closed up by the daily limit of 10% on Wednesday, among the best performers on the Shanghai Stock Exchange Composite Index. In the past month, six of the top 10 gainers have the Chinese character for “dragon” in their names, Bloomberg-compiled data showed.