Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), and Tencent Holdings (OTCPK:TCEHY), three Chinese IT companies, all experienced gains on Friday as there were indications that Beijing may be loosening some of its Covid-related restrictions.
The improvements on Friday come a day after reports that China was shifting away from widespread lockdowns that sparked demonstrations across the nation and disrupted activities like the production of Apple (NASDAQ:AAPL) iPhones and the ability of tourists to visit Shanghai Disneyland (DIS).
Alibaba stock, e-commerce developments
Among significant Chinese tech firms, Tencent (OTCPK:TCEHY) gained more than 2%, Baidu (BIDU) gained 4%, and Alibaba stock (BABA) increased by more than 5%. Weibo (WB), up over 8%; JD.com (JD), up almost 4%; and Pinduoduo (PDD), up 3.5%, were the other gainers. With a gain of about 6%, the KraneShares CSI China Internet ETF (KWEB) moved higher.
The day’s events brought to light the back-and-forth that has been going on on Wall Street for weeks as reports that China is hesitantly reversing its “Zero-Covid” policy have been contradicted by lockdowns and protests relating to Covid in China.
Alibaba stock, one of the biggest online retailers in the world, held more than 50% of the market at one point. Nevertheless, as the majority of value investors are probably already aware, the stock has recently dropped to bargain-basement levels as a result of a wide range of setbacks, including a crackdown on tech regulations in China, legislation that could very well result in the delisting of Chinese stocks from U.S. exchanges, and last but not least, macroeconomic problems brought on by the Covid-19 pandemic and China’s ongoing COVID lockdowns.
Featured Image – Pexels © Andrea Piacquadio