Jiujiuwang's Technical Breakthrough Sparks Frenzy Trading, But Fundamental and Liquidity Risks Remain

Comprehensive Analysis

The starting point of this event was the East Money App’s Hong Kong Stock Surge List (Tushare dc_hot) recording Jiujiuwang’s popularity on December 17, which coincided with the Hong Kong stock market’s closing period, indicating that the market’s reaction to this price level was concentrated around the close of trading that day [3]. AA Stocks data shows that the stock price broke through the upper track of the region on that day, with a 10-day cumulative increase of 16.54%, and trading volume reached 400,000 shares, forming a typical technically driven breakout market [1]. Combined with internal data confirming the stock’s low liquidity, it indicates that any short-term funds may amplify the impact of good or bad news through small trading volumes, so the possibility of profit-taking speculative behavior is high [0].
From the fundamental perspective, Jiujiuwang’s revenue is only about RMB 315 million, with its first loss in 2024. Its main candy business is mainly OEM. Under the overall industry transformation and changes in consumer preferences, it lacks a clear growth engine, so the current price trend has no performance improvement as support [2]. In contrast to the general operational difficulties of Jinjiang-based enterprises in the same industry, it reflects that structural pressure has not been relieved [2].
From a cross-time dimension, there is a disconnect between technical signals and fundamental signals. Without announcement support, short-term breakthroughs are likely to become a catalyst for penny stock short-term speculation. If trading volume shrinks rapidly or the price is blocked and pulled back subsequently, the price may be more sensitive, leading to a cliff-like decline [0].

Key Insights

The popularity stems from technical charts rather than fundamental recovery. The 10-day increase and breakout range were not accompanied by substantive performance or announcements. Investors need to be alert to psychological chasing of highs caused by “chasing hot spots” [1][2].
The company’s asset size and profitability are relatively weak. Currently, it is still OEM-centric and has not shown a path to transformation or high-value-added products, meaning short-term popularity is more likely to come from technical sentiment rather than fundamental realization [2].
Low liquidity amplifies price volatility. If funds withdraw, the stock price may quickly fall back to the original range or even lower. It emphasizes setting technical support and stop-losses in a timely manner at high levels [0].

Risks and Opportunities

Risks: The 2024 loss has hit fundamental confidence; in a high-volatility environment, the bid-ask spread is large and it is difficult to stop losses in time; the technical breakthrough lacks news support, and the risk of hot money manipulation is high; the industry as a whole faces rising health awareness and suppression by leaders like Xu Fuji, and the prospect of profitability recovery is unclear [1][2][0].
Opportunity Window: If there are subsequent announcements of restructuring, capital operation, or main business transformation, it may provide a new logic for funds, but there are no signs of these factors currently; short-term momentum still comes from technical breakthroughs, so it is necessary to focus on whether trading volume continues to expand or declines [1].
Time Sensitivity: The event is based on the day’s surge list data and is driven by short-term market sentiment. It is recommended to treat it with an ultra-short-term strategy if intervening, and pay attention to Hong Kong Stock Exchange announcements and trading volume changes at any time [3].

Key Information Summary

The hot event occurred at 16:30 (HKT) on December 17, 2025. On that day, it broke through the upper track of the region and saw short-term momentum strengthen, prompting the stock to enter the hot list [3][1].
Fundamentals are still in a loss state, with small scale and reliance on traditional candy OEM. Under industry challenges, there is no new supporting logic [2].
Extremely low liquidity and speculative sentiment mean that prices are easily driven by short-term funds. Without fundamental improvement, subsequent pressure is great. Any participation requires strict position control and stop-loss strategies [0].
The event reflects a typical “small-cap stock technical breakthrough - fundamental risk alignment” model. Continuous observation of trading volume, announcements, and capital flow changes is particularly critical [1][2][3].

Jiujiuwang's Technical Breakthrough Sparks Frenzy Trading, But Fundamental and Liquidity Risks Remain

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