TD Holdings stock rockets on massive volume after move into new-energy vehicle industry


Shares of TD Holdings Inc.
GLG,
+24.79%

shot up 37.3% on massive volume in afternoon trading Friday, after the China-based commodities trading service announced a move into unmanned logistics and the new-energy vehicle industry with two acquisitions. Trading volume exploded to 176.2 million shares, enough to make the stock the most actively traded on major U.S. exchanges, and compared with the full-day average of bout 368,700 shares over the past 30 days, according to FactSet. The company said early Friday that it has reached agreement to acquire Guangdong Jinbochuang Special Purpose Vehicle Co. Ltd. and Hunan Jinmeike New Material Co. Ltd., for an undisclosed amount. Jinbochuang is in the lightweight truck tops and parts and components business, and also develops magnesium-aluminum alloy lightweight cars, while Jinmeike produces magnesium alloy new materials and magnesium alloy new energy auto parts. “We expect to incorporate lightweight new materials, applications and lightweight trucks into our global industry chain,” said TD Holdings Chief Executive Renmei Ouyang. “Through leveraging the advantages of Jinbochuang’s experience in new energy vehicle industry and Jinmeike’s expertise in unmanned logistics, we strive to optimize our business.” TD Holdings’ stock has still lost 29.9% year to date, while the iShares MSCI China ETF
MCHI,
-1.36%

has slipped 3.6% and the S&P 500
SPX,
-0.81%

has gained 15.7%.