This is outrageous.
According to a report in The Financial Times, shares of real estate company P2P Financial Information Service rose 10% — the daily maximum — on Monday after the company changed its name.
P2P changed its name from from Shanghai Duoluyn Industry, which is apparently less interesting to investors.
The FT noted that in filings P2P said it registered the domain www.p2p.com, which the company estimates is worth $US100 million. P2P, however, hasn’t yet entered the peer-to-peer lending business.
This latest bit of craziness out of the Chinese stock market comes after the People’s Bank of China cut interest rates over the weekend for the second time in about 2 months.
The interest rate cut comes amid concerns over a deepening slowdown in China’s economy, the world’s second largest, which is expected to grow around 7% this year, down from 2014’s growth rate of 7.4% which was the slowest since 1990.
In the last year, the Shanghai Composite has been the world’s hottest stock market, roughly doubling in the last year.
On Monday following the PBoC’s rate cut, the Shanghai Comp rose about 3%.
(via WaPo’s Matt O’Brien)