With all the bubbling frenzy recently around GameStop Corp., it¡¯s time to step back and look at how the broader market is doing. It turns out, there¡¯s froth elsewhere, too. Look no further than the Chinese companies listed in the U.S.
Of the 100 largest China-based firms by market cap, the mid-tier has already rallied a whopping 43% this year, far outpacing the top and bottom third, data compiled by Smartkarma¡¯s Douglas Kim shows. The biggest winners tend to be thematic. For instance, Futu Holdings Ltd., an e-brokerage that enables Chinese citizens to trade U.S. stocks, soared over 150% to a $15.8 billion market cap, as investors bet the notorious day traders in the People¡¯s Republic would join the retail rebellion too. Daqo New Energy Corp., a solar panel maker, more than doubled in price to an $8 billion market value.
One reason for this outperformance could be the rise of the ¡°Reddit army,¡± noted Kim. Retail investors are not powerful enough to move the needle on mega-caps such as Alibaba Group Holding Ltd., but they may just be the price setters in a smaller arena.
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