October 24, 2011 (Chinavestor) Small cap China Finance Online (NASDAQ:JRJC) surged almost 30% by noon on Monday. The stock is up $.47 or 27.3%, the largest percentage jump in the last 52 weeks. Volume is also unusually high on Monday, ten times over average volume.And while there is no stock specific news, there are tow factors contributing to the surge. For one, Chinese financial stocks did poorly in the past week - China Life Insurance (NYSE:LFC). Related article: Technology, financials stocks strong comeback on Monday
Looking at China Finance Online (NASDAQ:JRJC) in particular, the stock was bottoming out in the last two weeks after a 36.5% dive. So a technical correction was timely.
And what proved to be a catalyst? It was China's strong PMI reading this morning. Chinese export stocks, shipping lanes surged in hopes of a soft lending. This made a sound case for China Finance Online (NASDAQ:JRJC), a company that has a proprietary software handling export/import transactions. When trade picks up, JRJC is back in business.
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