On March 16, Fangdd Network Group Ltd. (DUO) stock fell under corrections in the after-hours due to its huge gain during regular trading. The stock made some big gains in the prior session on reports of support from the Chinese government for keeping the markets stable.
Thus, the stock gained a huge 53.44% during the regular trading session after fluctuating between $0.3790 and $0.5750. DUO closed the session at $0.4100 at a super active volume of 86.69 million shares. The session’s volume was a huge 4,208% of its average 2.06 million shares. Following this, the stock succumbed to corrections in the after-hours and lost 6.34%. Hence, the stock was trading at $0.3840 apiece in the after-hours on Wednesday.
The China-based investment holding company, Fangdd Network Group Ltd. has a market capitalization of $21.34 million.
What Happened?
Most Chinese stocks have had a very rough time lately due to China’s relations with Russia. The speculations of China’s support for Russia as Russia invades Ukraine, had the investors under continuous fear of added sanctions and further market frenzy. Like most Chinese stocks, DUO had also been in a persistent downward spiral for the past few weeks.
On Wednesday, reports emerged about the Chinese government’s promise for support towards market stability. According to a state-run media report, the country’s financial stability and development committee also had a meeting recently. Moreover, the Chinese government has promised to roll out support for the economy to keep markets stable. Consequently, Chinese stocks including DUO emerged in hefty seismic moves on Wednesday. But the huge upsurge of DUO ultimately led to its downfall in the after-hours due to corrections.
DUO Company News
On January 7, the company announced receiving a notice from Nasdaq, dated January 4, 2022. According to the notice, DUO is in non-compliance with Nasdaq Listing Rule 5450(a)(1) for the minimum bid price requirement. The non-compliance resulted due to the company’s shares closing below $1.00 for consecutive 30 days. Therefore, Nasdaq gave the company a grace period of 180 days to regain compliance with the listing requirements, till July 5, 2022.
The company will regain compliance with Nasdaq if its closing bid price remains $1.00 or above for consecutive 10 days during the grace period. Additionally, if the company failed to regain compliance in the required time, it may be eligible for a further extension of 180 days.
