By Tomi Kilgore
NIO, Alibaba stocks jump toward 4-week highs, Pinduoduo's stock on track for 3-month high
The U.S.-listed shares of China-based companies traded broadly higher Tuesday, as investors were emboldened by the major steps to be taken to lift COVID-19-lockdown measures in Shanghai.
The Invesco Golden Dragon China exchange-traded fund (PGJ) charged up 4.6% in morning trading, with more than three-quarters of its active components enjoying gains, to buck the weakness in the broader stock market. That put the ETF (PGJ), which is comprised of U.S.-listed shares of companies based in the People's Republic of China, on track for the highest close since May 4.
Meanwhile, the S&P 500 index shed 0.9% and the Nasdaq Composite Index lost 0.8%.
The PGJ's most active component was electric vehicle-maker NIO Inc.'s stock (NIO), which ran up 4.3%. It has soared 18.1% amid a four-day win streak, and has rocketed 36.0% since closing at a 22-month low of $12.71 on May 11.
Also seeing heavy trading, shares of KE Holdings Inc. (BEKE) shot up 10.9% after the housing transactions platform reported a wider-than-expected first-quarter loss but revenue that beat forecasts, while ecommerce giant Alibaba Group Holding Ltd.'s stock (9988.HK) rallied 3.2%.
Shanghai authorities said they will take measures on Wednesday to reopen Shanghai, China's largest city, as the Associated Press reported. That fueled investor optimism for a quick rebound in country's economy, which is the world's second largest.
Among some other more-active American depositary shares (ADS) of China-based companies, Pinduoduo Inc. (PDD) ran up 5.9% toward a three-month high, and have soared 38.4% amid a four-day win streak. Benchmark analyst Fawne Jiang reiterated the buy rating and $85 stock price target, which implied about 66% upside from current levels, after the mobile marketplace had reported on Friday big profit and revenue beats for its first-quarter.
Elsewhere, the ADS of iQIYI Inc. (IQ) rose 1.8%, JD.com Inc. (JD) climbed 5.7%, DiDi Global Inc. (DIDI) tacked on 0.5%, Tencent Music Entertainment Group (TME) advanced 2.3% and Bilibili Inc. (BILI) jumped 8.6%.
The Golden Dragon China ETF has dropped 21.9% year to date, while the S&P 500 has lost 13.6% and the Nasdaq has tumbled 23.1%.
(END) Dow Jones Newswires
May 31, 2022 11:48 ET (15:48 GMT)
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