What happened
Shares of the Chinese fintech company Up Fintech Holding (TIGR 0.79%) traded roughly 11% higher as of 2:45 p.m. ET, after Chinese stocks reacted positively to broader macroeconomic news in China today.
So what
The People's Bank of China earlier today reduced its one-year loan prime rate to 3.7% from 3.8%, while it trimmed the country's five-year loan prime rate to 4.6% from 4.65%. China's central bank did this because it is worried its economy might be slowing.
Image source: Getty Images.
"Mortgages will now be slightly cheaper, which should help shore up housing demand. The PBOC has already pushed banks to increase the volume of mortgage lending," Sheana Yue, a Chinese economist at Capital Economics, wrote in a research note, according to CNBC.
In general, the news seemed to also benefit tech stocks in the region. The NASDAQ OMX China Technology Index, which tracks tech stocks in China and Hong Kong, traded up 2.75% today. Up Fintech is an online brokerage where users can buy and sell stocks on exchanges around the world, so it certainly qualifies as a tech stock.
Now what
Up Fintech is down nearly 66% over the last year, so it definitely presents an attractive entry point. Ultimately, I do see an opportunity with the company, given how big China's economy is and the growing wealth in the country, which should eventually find its way into equities and other financial instruments.
But I tend to stay away from Chinese stocks due to the complex regulatory landscape. Take a look at this one, but make sure to understand the potential regulatory headwinds before investing.
