US-listed Chinese stocks jumped anew on Friday as fresh optimism over a possible reopening in China and progress in a US audit of Chinese tech companies to prevent their delisting fueled appetite for beaten-down names.
(Bloomberg) — US-listed Chinese stocks jumped anew on Friday as fresh optimism over a possible reopening in China and progress in a US audit of Chinese tech companies to prevent their delisting fueled appetite for beaten-down names.
Shares in internet giant Alibaba Group Holdings Ltd. rose 8.9%, JD.com Inc. gained 8.3% and Baidu Inc. climbed 6.7% in US premarket trading. Pinduoduo Inc. rallied 9.4% and Bilibili Inc. jumped 13%, while electric vehicle stocks NIO Inc. and Li Auto Inc. advanced 11% and 14%, respectively.
The rally follows days of speculation on the back of unverified social media posts detailing a China reopening plan, boosting hopes that the country is preparing to exit its strict Covid Zero policy. A Bloomberg report that China is working on plans to end a system that penalizes airlines for bringing virus cases into the country also boosted sentiment.
The Nasdaq Golden Dragon Index of 65 Chinese stocks has climbed for the past three sessions and is up 7.5% on the week, rebounding after closing at its lowest level since 2013 last week in a record selloff amid worries over President Xi Jinping’s tightening control.
READ: Tech Audit, Reopening Bets Fuel Best China Stock Rally in Years
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