The story of "Ode to Joy" in Guizhou Red Star continues to increase its daily limit for three days. Wanda Real Estate may use it to go public

The share price of a loss-making China chemical company has suddenly surged, in part because its name resembles the fictional company targeted in a hit TV drama. Red Star Development's share price also benefited from rumors in China media that Wanda Commercial Real Estate, which is listed in Hong Kong, plans to shell the company's listing in the mainland.

Original title: TV series fictional acquisition targets cause listed companies in China to rise and fall. The

share price of a loss-making China chemical company suddenly rose sharply, in part because its name is similar to the fictional company targeted in a popular TV series.

Shares in Shanghai-listed Guizhou Redstar Developing Co rose to a daily limit for the third consecutive trading day on Tuesday, proving the speculative enthusiasm of China's retail investors. Trading in the stock remained suspended on Wednesday and Thursday.

Retail speculators are the main force behind the boom and bust cycle of China's stock market. Last year, China's stock market experienced major ups and downs. The Shanghai Composite Index first surged 60% in the first five months, and then fell 45% in the next nine weeks. According to some estimates, retail investors account for 80% of total stock market trading volume.

"Ode to Joy," which premiered on Dragon TV last month, is a bit like a China version of "Big Bang Theory" or "Friends." The play revolves around a group of young professional women sharing an apartment in Shanghai. In a recent episode, Andy, a talented investor who returned to Shanghai after working on Wall Street, made an acquisition target for a fictional company called Redstar Group.

"You should fully consider Red Star's technical capabilities, especially in the field of 3D multimedia," she told employees in episode 3 who were drafting an acquisition plan.

According to the official business introduction of Red Star Development in real life, it "mainly provides barium carbonate, strontium carbonate, barium hydroxide, strontium nitrate, strontium chloride, high-purity manganese sulfate and sulfur by-products."

Red Star Development's share price also benefited from rumors in China media that Hong Kong-listed Wanda Commercial Properties plans to shell the company's mainland listing.

After the market closed on Tuesday, Red Star Development, which recorded a loss of 190 million yuan last year, issued an announcement clarifying these rumors. The company said that neither the company nor its shareholders had negotiated with Wanda Commercial Real Estate. The announcement said,"The company... reminds investors to pay attention to investment risks," and pointed out that the company's P/E ratio has reached 434 times.

So-called "concept stocks"-stocks linked to certain hot investment themes and designed to attract retail investors-played a key role in last year's stock market bubble and have a long history in China.

Small-cap companies are popular targets for speculators because relatively little capital can drive sharp changes in their share prices. About 53 million shares of Red Star Development changed hands on Tuesday, the highest trading volume since its listing in 2001.

On November 7, 2012, during the meeting of President Barack Obama After Barack Obama was re-elected, refrigerator maker Aucma Co saw its share price rise 4% in afternoon trading because its name was similar to the official transliteration of "Obama."

Editor: Nancy