Noah Holdings Limited (NOAH) , the self-described "leading wealth management service provider focusing on distributing wealth management products to the high net worth population in China" saw its shares drop a week after the NYSE contacted the company regarding unusual market activity.
The Shanghai-based company’s stock rose nearly 40 percent between Oct. 8 and Oct. 17 for no discernible reason. On Oct 15 the New York Stock Exchange contacted Noah Holdings to inquire as top why exactly the company’s shares had risen so aggressively with no explanation. Noah Holdings responded that it is the company’s policy "not to comment on unusual market activity or rumors."
Two weeks prior, another Chinese small-cap experienced a sudden, dramatic rise in price for no apparent reason, prompting a NYSE inquiry. Commercial corn alcohol distiller China New Borun (BORN) spiked over 40 percent with no micro explanation, and likewise refused to comment on the activity, citing company practices.
Like China New Borun, Noah’s shares have begun to correct following the sudden stock spike. On Oct 28 Noah fell nearly 10 percent in early trading before rebounding slightly. By midday trading Noah Holdings had lost 5.74 percent to hit $16.90 a share.
In August Noah Holdings issued their second quarter earnings report, and claimed a whopping 143 percent increase in revenues and a 156 percent increase in net income from the previous year. The company’s shares are up 200.84 percent in 2013.
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