The9 Limited (NASDAQ: NCTY) is flying early on in the pre-market hours this morning, following up on the strong gains that we saw on the stock yesterday. The gains are leaving some investors scratching their heads as the company hasn’t issued any news or filed anything with the SEC.
Nonetheless, there’s a very good reason for the gains. Today, we’ll talk about:
- Why NCTY stock is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why NCTY Is Climbing
As mentioned above, this week is off to an incredible start for The9 Limited, with more than 30% gains yesterday and today starting on a seriously positive note. However, the company hasn’t issued any news. So, what’s the deal?
Well, if you look across the Chinese market, you’ll see that NCTY isn’t the only stock in the region that is seeing strong gains. In fact, we seem to be seeing green across the board, and it is all the result of recent macroeconomic news.
Over the weekend, news broke that progress has been made toward ending the Trade War between the United States and China. According to various reports that surfaced over the weekend, the two countries are very close to reaching an agreement.
For some time now, the Trade War has resulted in sanctions imposed by the United States on China and by China on the United States. Unfortunately, this has led to some very real concerns with regard to the Chinese economy, hampering investor interest in various investment opportunities in the region.
However, with the Trade War seemingly coming to an end, investors are expecting that sanctions will be lifted and that the Chinese economy will see strong growth ahead. Of course, this would be great news for NCTY as well as other Chinese equities. After all, strong economic conditions generally lead to business growth in the region.
What We’re Seeing From The Stock
While The9 Limited hasn’t issued any news of its own, macroeconomic news suggests that China may see an economic boost relatively soon. That’s great news for the company and its Chinese neighbors.
Considering the recent news, it comes as no surprise to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:45), NCTY is trading at $2.56 per share after a gain of $0.61 per share or 31.28% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NCTY. In particular, we’re interested in following the story surrounding the company’s work to take advantage of the changing tides in the Chinese economy. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
What Do You Think?
Where do you think NCTY is headed? Why? Join the discussion in the comments below!
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