US-listed Chinese stocks gain momentum after a pulse-pounding 2021 – Community News
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US-listed Chinese stocks gain momentum after a pulse-pounding 2021

Jan 14 (Reuters) – US-listed Chinese stocks rose before the opening bell on Friday, enjoying a robust rally early in the year as less shocking regulatory headlines from Beijing spurred investors to pick up battered names, including Alibaba , JD.com and Baidu.

E-commerce giant Alibaba rose 0.5%, contributing to a 17% jump over the past 11 trading days. Analysts said this week that retail investors are strong buyers of the tech giant’s shares.

China-based e-commerce company JD.com Inc advanced 2.6% and hopes to wrap up its best weekly performance in nine weeks.

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Online search engine Baidu Inc, which peaked in nearly two months earlier this week, rose 0.6%, while online retail marketplace Pinduoduo (PDD.O) added 0.9% after its one-month high on Wednesday.

β€œIn a nutshell, we think the worst of the tech regulation storm is behind us, even though the regulatory upgrade is not over and will have a lasting impact on the long-term growth prospects of the tech sector,” they said. analysts from Societe Generale in the report. a research note on Thursday.

β€œ(The year) 2021 saw a shocking crackdown on EdTech, gaming and internet platforms, but 2022 should be a year of institutionalization and implementation of the new laws and regulations. This phase should bring fewer unpleasant surprises and thus less uncertainty.”

Chinese ADRs were curbed in 2021 when Beijing tightened regulatory scrutiny on sectors ranging from gaming to education, in a sweeping crackdown on its vast and once free-wheeling online “platform economy”.

The Nasdaq Golden Dragon China Index (.HXC) fell 43% last year in the sharpest decline since the 2008 financial crisis.

Ride hailing giant Didi Global Inc (DIDI.N) strengthened 1.3% on Thursday. Earlier this week, a report said the company’s IPO in Hong Kong could take place in the second quarter.

Social media platform Weibo looked at its first monthly gain since July and Tencent Music (TME.N) would climb for the sixth time in seven sessions.

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Reporting by Medha Singh in Bengaluru; additional reporting by Bansari Mayur Kamdar; Editing by Bernard Orr

Our Standards: The Thomson Reuters Trust Principles.