Why Alibaba, JD.com, and Baidu Stocks Roared Higher Early Tuesday
Stocks of some of China's most popular companies rallied out of the gate on Tuesday. The Chinese government has long instituted strict measures and government regulatory crackdowns to slow the spread of the pandemic, which has weighed on the country's already fragile economy. However, recent developments suggest the worst may be over, which could result in the lifting of government restrictions, thus providing a boost to China's battered stock market.
With that as a backdrop, shares of e-commerce platform Alibaba (NYSE: BABA) gained 7.7%, digital retailer JD.com (NASDAQ: JD) climbed 8.7%, and search giant Baidu (NASDAQ: BIDU) surged 7.9% this morning. As of 12:44 p.m. ET, the trio were still trading higher, up 5.2%, 3.1%, and 5.4%, respectively.
Reports on Chinese social media emerged overnight suggesting that a government committee had been formed to develop plans to fully reopen China by March of 2023. This would represent a major step forward in lifting a broad array of pandemic-related restrictions imposed to slow the spread of COVID-19. Many cities in China have faced government-mandated lockdowns as a result of the country's "zero COVID" policy.
Source Fool.com
