Why This Chinese Penny Tech Stock Rocketed Today

At a time when most Chinese tech stocks are getting walloped thanks to a government crackdown, shares of Luokung Technology (NASDAQ: LKCO) are on fire, rising by nearly 13.9% as of 2 p.m. EDT today. Two big factors seem to be driving this $2 penny stock higher.

China-based Luokung specializes in digital mapping technology. It primarily offers location-based services in China and runs a mobile application that distributes a variety of content and services.

Of late, regulators in China have come down heavily on Chinese stocks listed in the U.S., citing security and data-privacy concerns, and some of the latest developments have rattled stocks across the board. Among the most glaring examples is DiDi Global (NYSE: DIDI): Just this morning, the Cyberspace Administration of China (CAC) announced that 25 mobile apps operated by the ride-hailing giant have been removed from app stores, barely days after it ordered DiDi to stop registering new users.

Source Fool.com