Chinese technology stocks listed on Wall Street are now attempting a comeback after witnessing a free-fall for more than a month. Big names Alibaba, Pinduoduo, JD.Com, Baidu, and DiDi Global have all surged sharply so far this week, jumping more than 10% each. The up-ward march in Chinese stocks, listed in the US, comes as investors jumped in to buy shares after the sharp correction. The up-move was also aided by strong quarterly earnings reported by these firms. On Wednesday Chinese companies did see some corrections but still remain positive on a weekly basis.
Investors on Wall Street were selling US-listed Chinese stocks after Chinese regulators cracked down on internet companies in Beijing and announced regulations that would make it difficult for Chinese companies to list in the US.
Among the institutional investors entering the Chinese technology stocks now is ARK Investment Management’s Cathie Wood. This week Cathie Wood has picked up shares of JD.Com, JD Logistics, Pinduoduo, and Tencent Holdings. ARK Investment Management’s move to increase exposure to Chinese stocks comes after the New York-based investment firm had trimmed its stake in Chinese companies to less than 1% in July from 8% earlier in February.
Cathie Wood earlier this week told Bloomberg that she is not pessimistic about China in the longer run, despite the regulatory crackdown on leading internet and luxury names. According to Wood, the Chinese government is not looking to stop growth and progress while adding more rules and regulations.
Despite this week’s up-move, major stocks such as Alibaba, Baidu, and others are still way off their highs. Alibaba is still down 26% from the end of June. Baidu is down 25% during the same period while Tencent Holdings is down 20%.
Major US-listed Chinese stocks gain
–Alibaba Group Holding ADR – Up 7.22% so far this week, trading at $169.10 apiece
-Pinduoduo Inc – ADR – Up 26.59% so far this week, trading at $97.84
–JD.com – Up 19.68% so far this week, trading at $76.14 per share
-NetEase – up 14.04% this week, trading at $91.95 apiece
-Nio Inc – Up 5.56% so far this week, now trading at $38.95 per share
–Baidu Inc – Up 12.70%, trading at $155.13 apiece
-DiDi Global – Up 10.29%, trading at $8.25 per share