U.S.-listed shares of Chinese internet stocks are rallying sharply Tuesday after coming under pressure in recent weeks amid concerns about the potential for increased regulation. U.S.-listed shares of Alibaba Group Ltd. BABA, are up 6.3% in Tuesday trading, building on their 2% gain on Monday, which came after eight straight sessions of declines amid regulatory fears. Alibaba shares are on track for their largest single-day percentage increase since April 12, when the shares rose 9.3%. Shares of JD.com Inc. JD, are up 12.0%, and on track for their best single-day percentage performance since March 2, 2020, when the shares rallied 12.4%. JD.com posted earnings Monday morning, which Mizuho analyst James Lee wrote reflected “strong execution despite regulatory uncertainty.” JD Retail Chief Executive Lei Xu said on the company’s earnings call Monday that he saw the regulatory landscape as “a good thing for the long-term and healthy development of the industry” as JD.com has “suffered from unfair market behaviors such as pick one from two, excessive price subsidies, and disordered capital expansion and more,” according to a FactSet transcript. Shares of Pinduoduo Inc. PDD, are up 14.5% in Tuesday morning trading after the Chinese e-commerce company posted a surprise profit earlier in the day, even as revenue fell short of expectations. Other big gainers in Tuesday’s session include Tencent Music Entertainment Group TME, up 11.6%; Qutoutiao Inc. QTT, up 9.2%; Bilibili Inc. BILI, up 9.6%; Baidu Inc. BIDU, up 7.6%; Huya Inc. HUYA, up 6.5%; and iQiyi Inc. IQ, up 6.0%. Shares of Chinese electric-car maker Nio Inc. NIO, are ahead 3.0%. The KraneShares CSI China Internet ETF KWBP, is up 8.8% Tuesday. It has lost 10.5% over the past month and 28.9% over the past three months.
CNY - Chinese Yuan Renminbi