After making outstanding debuts for AMTD Digital Inc. and Magic Empire Global Ltd., another Chinese business astounds investors with enormous gains on its first day of trading in the United States.

In its opening session on Wednesday, Addentax Group Corp. soared as much as 13,031 percent, setting off more than 20 volatility stops. Its market capitalization has increased to USD 20 billion, surpassing that of nearly one-third of the S&P 500 Index participants.

Addentax is at least the sixth firm from Hong Kong or China to see equally unexpected swings after its US IPO this year. Addentax's primary activities include textile production and shipping services. 

Both the Hong Kong-based financial services companies AMTD Digital and Magic Empire made news earlier this quarter when their shares inexplicably increased by thousands of percent despite murky fundamentals before the rallies petered out. Over time, AMTD Digital Inc. surpassed Goldman Sachs Group Inc. in size.

Hebe Chen, an analyst at IG Markets Ltd., said that the price of Addentax Group "looks to be purposefully replicating the story of HKD and MEGL, which have recently experienced an unprecedented stock price frenzy." She said  that among the things they had in common included their traditional backgrounds and less than ideal financial standing.

Due to the surge, Hong Zhida, the chairman and CEO, and his brother Hong Zhiwang, a director, now own a combined USD 1.3 billion worth of shares. CEO Hong owns 4.8% of Addentax common stock, while his brother holds 1.6%, according to the prospectus.

Addentax, a shell company that was first listed in 2015, acquired a significant share in its current principal operating entity, Yingxi Industrial Chain Group Co., in December 2016. Prior to this week's Nasdaq listing, the company traded on the OTCQB Marketplace, an over-the-counter exchange for US equities.

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