Why Luokung Stock Sank 26% Today: It's Not Just China
With Chinese stocks falling off the cliff Monday, it wasn't surprising to see Luokung Technology (NASDAQ: LKCO) shares take a hit, too. The huge drop in the price of the Chinese tech stock, though, caught investors off guard: Luokong shares were down an astounding 26.4% as of 3:30 p.m. EDT today.
Two developments rattled investors in Luokung.
First were investor concerns about China, what with China Evergrande Group (OTC: EGRNF) reportedly likely to default on billions in debt and file for bankruptcy. As one of China's leading property developers, Evergrande could have a domino effect on the real estate and financial sectors in the nation. If it collapses, it could stall growth and perhaps even drive China into a recession if things take an ugly turn like they did during the Lehman Brothers financial crisis of 2008.
Source Fool.com
