Hong Kong-based meme stocks, including Magic Empire (NASDAQ:MEGL) stock and AMTD Digital (NYSE:HKD) stock, have been trending in recent days on social media amid massive rallies in their shares.
About Magic Empire and AMTD Digital
Magic Empire is an investment bank whose shares are surging 19% today. MEGL stock also soared 78% over the last five trading days heading into today.
Also an investment bank, AMTD has become widely known for its stake in AMTD Digital, which has been described as a “financial services incubator.”
In a previous article, I explained that AMTD Digital “supports early-stage fintech companies with investments, introductions to other potential partners, and ‘other resources,'” and I noted that the company receives revenue from the start-ups that it supports.
HKD stock had soared nearly 200% in the five trading days heading into today.
Recent, Positive Catalysts for Chinese Stocks
In recent weeks, Chinese stocks have trended higher after the Asian country began relaxing its zero Covid policies.
Meanwhile, investors’ mood towards Chinese tech stocks improved further because Beijing earlier this week agreed to allow Ant Group, a subsidiary of e-commerce giant Alibaba (NYSE:BABA), to raise additional funds. In previous years, the Chinese government had prevented Ant, the owner of a widely used payment app, from raising funds through an initial public offering (IPO) and blocked a sale of a 20% stake in its consumer finance unit.
AMTD and MEGL Stock: Lockup Expirations
Both Magic Empire and AMTD have lockup expirations coming soon. On lockup expiration days, company insiders, including very large shareholders and top company executives, can begin selling their publicly traded shares of companies for the first time. Lockup expiration rules are usually adopted by companies that have recently conducted IPOs.
AMTD’s lockup expiration is scheduled to occur on Jan. 11, while AMTD’s lockup expiration is slated to take place on Jan. 31.
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.