Chinese stocks listed in the U.S., such as tech titan Alibaba ( BABA ) – Get Report and e-commerce stalwart Pinduoduo ( PDD ) – Get Report , rose on Tuesday in a major bounceback from the recent plunge. The stocks had dropped after China’s government expressed wrath toward some of the country’s biggest businesses, accusing them of monopolistic activity, and beginning a regulatory clampdown. But many investors say the rout in China’s stocks has gone too far. They see the government as unlikely to slay the goose that has laid the golden eggs — the goose being the major technology companies. What would China’s economy be without its megatech companies? Less successful, certainly. Clearly, the government doesn’t like being criticized by the likes of Alibaba Chief Jack Ma, but throwing out the baby with the bathwater makes no sense. Eaton Corp. Shares Set to Continue Rising: Real Money Chartist Kamich As for Tuesday's moves, Alibaba traded at $172.16, up 6.9%; Pinduoduo at $93.82, up 16%; and e-commerce giant JD.com ( JD ) – Get Report at $73.80, up 12%. Electric-vehicle stock XPeng ( XPEV ) – Get Report traded at $40.28, up 1.5%. JD.com shares rose Monday after it reported stronger-than-expected second-quarter results. For the second quarter, net income registered 794.3 million yuan (US$122.8 million), or 0.5 yuan per American depositary share, down from 16.45 billion yuan, or 10.47 yuan per ADS, in the year-earlier quarter. The latest adjusted profit totaled 2.9 yuan per ADS, topping the FactSet analyst consensus estimate of 2.6 per ADS. Revenue surged 26% to 253.8 billion yuan from 201.1 billion yuan. The analyst consensus called for 248.3 billion yuan in the latest quarter.
CNY - Chinese Yuan Renminbi