MMTec, Inc. (NASDAQ:MTC) shares are moving higher on Wednesday on continued strength in Chinese stocks after China's Central Bank announced stimulus measures last week.
Additionally National Day Golden Week, a week long public holiday, kicked off on Tuesday.
What To Know: The bank's stimulus measures include a cut to the reserve requirement ratio by 0.5 percentage points, lowering the loan prime rate and deposit rates by 0.2 to 0.25 percentage points and decreasing the seven-day reverse repurchase rate to 1.5%.
Capital Economics chief Asia Economist Mark Williams told Reuters that the package, "would lift annual output by 0.4% relative to what it would otherwise have been. It's late in the year, but a new package of this size that was implemented soon should be enough to deliver growth in line with the 'around 5%' target."
Traditionally, China sees an increase in tourism during the week long holiday leading to a boost in China's economy. However, the recent slowness in the country's economy may lead to lower travel related spending throughout the holiday.
Besides MMTEC, other US-listed Chinese stocks are also moving higher on Wednesday following the bank's stimulus measures, including JD.Com, Inc. (NASDAQ:JD) and Alibaba Group Holding Ltd. (NYSE:BABA).
How To Buy MMTec Stock
By now you're likely curious about how to participate in the market for MMTEC (NASDAQ:MTC) – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
MTC Price Action: At the time of writing, MMTec shares are trading 49% at 70 cents, according to data from Benzinga Pro.
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