The Clap
U.S.-listed Chinese stocks skyrocketed on Wednesday.
Tell me about the surge
U.S. listed Chinese stocks had a field day on Wednesday when a few of them soared by more than 50%. Alibaba jumped 36.7%, JD.com was up 39.4% & Pinduoduo soared 56%, to name a few.
But why?
China showed its support for its companies that are listed overseas, & hinted at its tech-company crackdown ending soon. Chinese regulators are also cooperating with U.S. regulators on a plan for U.S.-listed Chinese stocks.
Backstory
Both U.S. & Chinese regulators have been cracking down on U.S.-listed Chinese companies for months now. One company, ride-hailing app DiDi, even announced plans to delist from the New York Stock Exchange only six months after going public.
The Nasdaq Golden Dragon China index, which tracks the performance of U.S.-listed Chinese stocks, was down almost 70% over the twelve months prior to Wednesday’s trading session. It jumped 33% on Wednesday.
