China stocks have been under heavy pressure, with valuations cut roughly in half this year due to an ongoing government crackdown focused on antitrust issues.
Last week, for example, antitrust regulators issued new rules aimed at banning unfair competition.
The new rules, proposed by China’s State Administration for Market Regulation, affect various areas, including false advertising and the handling of consumer data.
China internet companies were also told not to conceal negative reviews and only promote positive ones. And, operators should not use data and algorithms to collect and analyze competitors’ trading information.
Action In China Stocks
Among China stocks on the move, Alibaba climbed 6.6%, closing at 171.70, on the stock market today. JD stock surged 14.4% to 75.22. Vipshop jumped 10.2% to 15.44. Pinduoduo soared 22.3%, to 99.12, while Baidu climbed 8.6%, to 155.08.
Before Tuesday’s rally in China stocks, Alibaba was down 53% from its high of 349.32 in October. JD stock was down 39% from its high of 108.29 in February. Vipshop had plunged 70%, while Baidu has sunk 60%.
The rally in China tech stocks arrives as most of the market leaders have reported earnings, many of them better than expected despite the regulatory crackdown.
On Monday morning JD.com reported second-quarter results that beat expectations as revenue jumped 26%. Tencent matched estimates with its earnings report last week. Early this month, Alibaba reported mixed quarterly results. Pinduoduo reported quarterly results Tuesday morning. It reported adjusted earnings of 26 cents a share, smashing estimates of a 29-cent loss. But revenue of $3.55 billion was well short of the $4.1 billion that analysts expected.
lease follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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