Analysis | Beware the froth around Xiongan-themed stocks as sellers hold back
Jidong Cement is among stocks that have surged by their 10 per cent limit for three straight days after Beijing unveiled plans for Xiongan New Area
Chen Yifeng can’t wait to buy shares of Tangshan Jidong Cement, one of the star stocks to emerge from President Xi Jinping’s ambitious plan to create a world-class economic zone on Beijing’s doorstep.
Unfortunately it looks as though the 39-year-old accountant from Shanghai may have to.
Buying has been so frantic that the cement maker’s shares have shot straight up by their maximum 10 per cent limit for three consecutive days, leaving investors like Chen frustrated.
“It’s a huge state event and has drawn high-profile attention,” said Chen. “Building a brand new city will drive demand for cement significantly so I am very positive on Jidong Cement. It’s still Ok if I can buy into the stock before its fifth daily up limit.”
Building a brand new city will drive demand for cement significantly so I am very positive on Jidong Cement
Jidong Cement is one of the dozens of stocks that have been dubbed by local investors as “Xiongan concept” shares – companies located in the vicinity of the site of the futuristic new district in Hebei.