Shares of Chinese internet stocks traded on U.S. markets are bouncing back after two days of decline. Companies like Alibaba Group Holding Ltd., JD.com Inc., and Nio Inc. saw a rally in their stock prices following a 2.2% increase in Hong Kong’s Hang Seng Index on Friday.
Alibaba’s Logistics Unit Plans IPO
Alibaba shares surged by 4.5% after Bloomberg News reported that the company’s logistics unit, Cainiao, may file for an initial public offering as early as next week. Alibaba has been restructuring its operations to unlock greater shareholder value and facilitate spinoffs. The company has already announced its intention to spin off its cloud-computing business.
Other Chinese Internet Companies Also Rise
In addition to Alibaba, other Chinese internet companies experienced a rise in their stock prices. JD.com’s stock increased by 2.5%, Bilibili Inc. jumped by 4.7%, Tencent Music Entertainment Group rose by 4.2%, and Baidu Inc. saw a 3% increase. The KraneShares CSI China Internet exchange-traded fund (KWEB) also recorded a 3.3% gain.
China Considers Easing Ownership Rules
Bloomberg News reported that China is contemplating easing restrictions on foreign ownership of publicly traded domestic companies to revive its stock market. Currently, there is a limit of 30% on total foreign ownership, with no single foreign shareholder allowed to own more than 10%. Any potential rule change could help boost investor confidence.
Chinese Electric Vehicle Stocks Shine
Chinese electric vehicle companies are also benefiting from the positive market sentiment. Nio’s ADR (American depositary receipt) rose by 1.7%, Li Auto Inc. saw a 4.2% increase, and Xpeng Inc. experienced a 4.5% surge in stock prices.
With the market showing signs of recovery, it appears that Chinese internet and electric vehicle stocks are once again generating investor interest.
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