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SGX's own S-Chip saga and then the penny stock sagas already ended many years ago. But yet similar stuff continues to appear (and re-appear) on the Nasdaq even till this day. Matter of fact, its entire market might actually be better off with such speculative behavior keeping animal spirits alive.
Not a lot of people will swear off investing in the Nasdaq, compared to let's say SGX when similar "pump-and-dumps" have appeared on both exchanges. So can the difference in attitude be explained because Nasdaq offers much more opportunities for one who lost money on the "pump-and-dumps" to earn it back their via the other end of the spectrum?
Unfortunately, if you have pump and dumps but without a significant opportunity to earn it back via other more exciting/dynamic companies been listed, then one would be largely consigned to the bins (something SGX had experienced). But when money can be made, then all can be made whole again.
China stock Pheton plunges 90% in minutes after pump-and-dump warning
The stock is just the latest example of wild trading moves seen in Chinese companies that trade on Nasdaq.
Ruanyun Edai Technology, which was listed in April, shed 91 per cent on Jul 14. Park Ha Biological Technology, a skincare product developer, lost 93 per cent on Jul 8. Jayud Global Logistics shares saw a record 96 per cent plunge on Apr 2. China Liberal Education Holdings shares shed 98 per cent in one day in January, and then in June, the stock was suspended from trading by Nasdaq, which also denied a company request to continue its listing.
In June, shares of Regencell Bioscience Holdings extended a rally from a February low of 82,000 per cent before tumbling 87 per cent in a nine-day streak of losses. The company, which has reported six consecutive years of net losses, blamed the surge on a short squeeze, a phenomenon where short sellers rapidly buy back borrowed shares to exit a trade, sending the stock even higher. BLOOMBERG
https://www.businesstimes.com.sg/compani...mp-warning
Not a lot of people will swear off investing in the Nasdaq, compared to let's say SGX when similar "pump-and-dumps" have appeared on both exchanges. So can the difference in attitude be explained because Nasdaq offers much more opportunities for one who lost money on the "pump-and-dumps" to earn it back their via the other end of the spectrum?
Unfortunately, if you have pump and dumps but without a significant opportunity to earn it back via other more exciting/dynamic companies been listed, then one would be largely consigned to the bins (something SGX had experienced). But when money can be made, then all can be made whole again.
China stock Pheton plunges 90% in minutes after pump-and-dump warning
The stock is just the latest example of wild trading moves seen in Chinese companies that trade on Nasdaq.
Ruanyun Edai Technology, which was listed in April, shed 91 per cent on Jul 14. Park Ha Biological Technology, a skincare product developer, lost 93 per cent on Jul 8. Jayud Global Logistics shares saw a record 96 per cent plunge on Apr 2. China Liberal Education Holdings shares shed 98 per cent in one day in January, and then in June, the stock was suspended from trading by Nasdaq, which also denied a company request to continue its listing.
In June, shares of Regencell Bioscience Holdings extended a rally from a February low of 82,000 per cent before tumbling 87 per cent in a nine-day streak of losses. The company, which has reported six consecutive years of net losses, blamed the surge on a short squeeze, a phenomenon where short sellers rapidly buy back borrowed shares to exit a trade, sending the stock even higher. BLOOMBERG
https://www.businesstimes.com.sg/compani...mp-warning