NEW YORK (TheStreet) -- Shares of YY Inc. (YY) are higher by 8% to $70.62 on heavy volume in late afternoon trading on Friday, as China-based stocks rally today after the Shanghai stock market topped the 5000 level for the first time since 2008, The Wall Street Journal reports.
YY Inc. is a communication social platform that engages users in real-time online group activities using voice text and video.
So far today, 3.59 million shares of YY have exchanged hands as compared to its average daily volume of 1.50 million shares.
Shares in China have been mixed recently with the Shanghai index dropping by 6.5% in one day last week, The Journal said. The volatility continued on Thursday when the index fell by 5% midday and then jumped up and closed higher.
The recent up and down in Chinese stocks is due to a crackdown on margin trading, The Journal added.
"The market receives a boost in liquidity today, as over 3 trillion yuan of funds locked up for purchasing initial public offerings is flowing back," Qian Qimin an analyst at Shenyin Wanguo Securities told The Journal. Qimin added that the jump passed the 5000 level wasn't unexpected but the volatile trading patter may continue.
Separately, TheStreet Ratings team rates YY INC -ADR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate YY INC -ADR (YY) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."