NEW YORK, NY / ACCESSWIRE / June 15, 2018 / Chinese stocks HUYA Inc. and Fanhua Inc. both hit new highs on Thursday. HUYA shares continued to rally after posting strong first quarter results in early June and receiving a "buy" rating from a Needham analyst recently. Shares of Fanhua saw gains after the company announced that its board had approved a "521 Development Plan."
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HUYA Inc. shares closed up 13.10% on Thursday with around 14.4 million shares traded. The Chinese online game streaming platform company saw its shares soar to a new high of $47.90seeing gains as high as 23% yesterday. It's been a bullish last few weeks for the stock since it went public in May. Since its debut in the market, shares have soared an impressive 174%. It was earlier in the week that Jinjin Qian, an analyst with Needham, wrote, "As the first pure-play game live streaming company to go public, we believe Huya is a solid name to own with a robust content ecosystem, strong user metrics, and scalable business model." The analyst also said, "[U]pside exists given its leadership position, revenue growth, improving profitability, and monetization upside potential." Qian put a "buy" rating on the stock with a $41 price target, which HUYA has already surpassed. The company posted first quarter results on June 5th that revealed a 111.5% year-over-year increase in revenues. CEO Rongjie Dong said at the time. "Our results build confidence in our strategy and solidify our leadership position in the game live streaming market. We are excited about our prospects as we devote our attention to growing our core business and exploring ways to further diversify our revenue streams in the future."
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Fanhua Inc. shares closed up almost 11% yesterday on about 472,000 shares traded. The stock hit a new high of $38.22 after the Chinese independent financial services provider announced that its board of directors has approved a “521 Development Plan”, aimed at achieving its goals of generating RMB2 billion annual net income and RMB10 billion annual first year premiums of life insurance business after five years. According to the company's press release, the company's board is "confident this will further strengthen its cash generation capabilities and allow Fanhua to pay steady dividends. " There will be three components that make up the Fanhua fund: Fanhua Fund A, Fanhua Fund B and Fanhua Fund C. According to the press release Fund A "will be used to purchase 5 million ADSs of the Company, and will be available to 800 of Fanhua's existing entrepreneurial team leaders," while Fund B "will be used to purchase 5 million ADSs of the Company, and will be available to the general managers of Fanhua's 27 provincial branches or subsidiaries." Fund C "will be used to purchase 4 million ADSs of the Company, and will be available to key managerial personnel at all levels, excluding senior management."
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