China Finance Stock Triples on Dow Jones Partnership
The Chinese fintech services provider aims to bring global data analytics to Chinese investors.
Shares in China Finance Online Co. (Nasdaq: JRJC) skyrocketed a whopping 198% Wednesday morning on its partnership with Dow Jones.
Under the deal, the business data division on News Corp. (Nasdaq: NWSA) will provide the Chinese financial services platform with "access to a sub-set of its Chinese language newswire service, which will include market commentary and spot news in Chinese," according to a JRJC press release.
Further, JRJC said, the collaboration will bring together the global economic data and financial expertise from Dow and the domestic data and user base of China Finance Online to deliver market information to Chinese investors and businesses.
In response to the news, JRJC stock tripled in value to $21.78 per American depositary share in early trading.
"We believe that this strategic partnership is highly complementary and will create tremendous knowledge and data synergies as well as premium content to benefit over 1000 of our institutional clients in China," the chairman and chief executive of China Finance Online, Zhiwei Zhao, said in the statement.
China Finance Online operates an analytical financial and economic database in China. Over recent years, the company boasts of adding data mining, artificial intelligence, cloud computing, natural language processing, and machine learning to its smart network of fintech solutions. Its clients are stock exchanges, banks, insurance companies, brokerage firms and asset management companies.
Zhao also said, "Sophisticated data analytics and timely news have always been the vital building blocks for our data mining and smart research products that are dedicated to empowering wealth management services in China."
Christopher Ellis, Head of Partnerships & Licensing, Asia Pacific, at Dow Jones, said, "I am confident that through our partnership, we will be able to further elevate the quality of financial news and information that Chinese customers will now be able to access and help to drive business decision making and innovation in China."
Wednesday marked the first day in a year that JRJC stock flew over $10 per share. First listed in New York in 2004, the company has enjoyed a time when its shares traded near $100 and even $300 per share. Since 2015, however, its stock has been sliding downward until reaching $7-$8 per share in 2019 and trading near that level and lower. We'll see if its partnership with Dow Jones gives it a long-term tailwind.