- Several Chinese stocks trading on US stock exchanges rose significantly on Wednesday.
- The rally came close on the heels of the Chinese government easing its hold on tech and growth stocks.
- Alibaba Group Holding Limited (BABA) was up 4.3%, while Bilibili rose 8.8% in premarket trading on Wednesday.
Several Chinese stocks trading on US stock exchanges saw an upsurge on Wednesday after the government’s assurance of extending support to the domestic technology companies.
The surge in Alibaba Group Holding Ltd. and Bilibili Inc stocks on Wednesday meant another rally in China tech stocks, igniting a small spark in investors hoping for a sustained rally in the coming days.
The Chinese government had recently approved 60 new game licenses, bringing the yearlong ban close to its end, which inflicted losses to the tune of US$2 trillion to the sector.
The Hang Seng Tech Index rose above the 100-day moving average first time in 15 months.
A report this week revealed that China is closing its probe into Didi Global Inc., which is seen as a huge turnaround in the sector otherwise considered risky to invest in.
In recent months, China’s tech gauge has also outshined the Nasdaq 100 index, at a time when the US stocks are battered by Federal Reserve’s tightening and inflation woes.
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China’s tech stocks rally continues in the US
Alibaba Group Holding Limited (BABA) was up 4.3%, while Bilibili rose 8.8% in premarket trading on Wednesday.
The market sentiment is upbeat on the news of a potential restoration of Didi on app stores. Investors are happy with the new gaming license approval of companies. Beijing’s strict curb on online gaming last year to stop gaming addiction had brought the sector to a standstill.
The Chinese government had barred these companies from domestic app stores for which they could not add new users.
Apart from Alibaba (NYSE: BABA) trading higher today, shares of JD.com (NASDAQ: JD) also rose close to 5% as of 10:45 a.m. ET. While shares of Full Truck Alliance (NYSE: YMM) had surged more than 12%.