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      TD Holdings Inc. (GLG) stock Has Another Day of Gains on Market Developments - Stocks Telegraph

      By Gule Rukhsar

      Published on

      April 5, 2022

      8:31 AM UTC

      TD Holdings Inc. (GLG) stock Has Another Day of Gains on Market Developments - Stocks Telegraph

      On April 4, 2022, the China-based holding company, TD Holdings Inc. (GLG) stock had another day full of gains. GLG added 8.55% in the prior session. Thus, the stock was trading up 16% to $0.3712 apiece in the pre-market following its close at $0.32.

      Source: Asia Financial News

      GLG stock’s bullish trend stems from the market developments regarding the ongoing audit-related conflict between the U.S. and China. The company shared disappointing 2021 results on Thursday, despite which the stock became bullish on Friday to continue rising until now. It seems investors overlooked the YOY decline in revenues and earnings on the relief provided by the recent news. On Friday and Saturday, translated reports claimed that Chinese regulators have signaled concessions on the audit issue.

      Chinese Stock Headed for a Fall or Not?

      Chinese stocks have been gravely beaten down over recent months. Blows from concerns over the China-Russia relationship added to the ongoing audit issues had them bearish for a while. Recently, more dual-listed Chinese companies were highlighted for possible delisting upon violation of regulatory measures in regard to audit. The gloomy clouds expanding on the horizon due to the step were soon cleared as a ray of hope emerged.

      On Saturday, China Securities Regulatory Commission along with other regulators said to loosen auditing rules. Thus, the uncertainty over the Chinese stocks is leaning towards an end if the Countries agree upon a compromise.

      With China leaning towards alternative options of having state-related secretes vetted before handing over the audit documents to the U.S. regulators, it seems the tensions are finally resolving. Hence, Chinese dual-listed stocks have been bullish since the reports emerged. But the bullish momentum’s future depends upon U.S.’s response to the proposed changes.

      GLG’s Outlook

      Having a better year so far, as compared to 2021, GLG stock’s future also depends on the U.S.-China audit issue resolution. Other than the external factors, the company is at an impasse on its own as well. GLG has been striving to improve its financial position and reduce SG&A costs but 2021 did not prove much better either. With the lack of cash being one issue, the detonating financial condition of not being resolved soon might lead the company to its ultimate downfall. Presently, GLG is exploring its options including the sale of another idle asset to help move things around. But so far, nothing substantial points to a bright future for the company.


      GLG has been rallying over the possible resolution of the ongoing issue between the U.S and China. Although the stock is making some gains on the reports its internal situation might lead it to a fall soon if not resolved.

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