Algorithmic Trading

This article examines the pervasive phenomenon of “small essays” – market rumors – in China’s stock market and their impact on stock prices. Fueled by social media virality and exploiting information asymmetry, these narratives often prioritize speed over accuracy, influencing retail investors and even algorithmic trading. The article categorizes common rumor themes, discusses the low-cost, high-reward nature of their creation and dissemination, and highlights challenges in regulating them. While authorities are cracking down, the article concludes that a better understanding of investments, more transparent dissemination of information and greater regulation are needed to combat their influence.

MCAP Inc. (OTC: MCAP) reported Q1 2025 EPS of $0.09 alongside $24M revenue and $3.2M adjusted EBITDA, reflecting progress toward scaling high-margin financial tech operations. Strategic focus areas include institutional client expansion, low-latency infrastructure upgrades, and targeted capital deployment. The firm’s international order book business grew 12% quarter-over-quarter, driven by its Singapore market-making unit. With 47 pending patent filings and initiatives in blockchain settlement and AI compliance systems, MCAP aims for ISO 27001 certification by Q3. Recent trademark filings hint at cross-asset digital execution ambitions, though regulatory hurdles persist. Shares trade at 12x forward EBITDA, below sector average, as cybersecurity and EU AI trading rules pose potential cost risks.