Why Alibaba, Pinduoduo, and Bilibili Surged Double Digits In June
Shares of leading Chinese internet stocks Alibaba (NYSE: BABA), Pinduoduo (NASDAQ: PDD), and Bilibili (NASDAQ: BILI) rose in June, according to data from S&P Global Market Intelligence, up 18.4%, 22.7%, and 14.5% during the month, respectively.
Chinese tech stocks rose amid a big government pivot. Since late 2020, Chinese regulators have embarked on a campaign to regulate, fine, and break up certain large technology companies in the country. After 18 months of the regulatory campaign, the popping of the country's property bubble last summer, and lockdowns from China's "zero Covid" policies beginning in March, the Chinese economy had weakened significantly this year.
However, in recent days and weeks, authorities appear to have pivoted from restriction to stimulus, and these three internet stocks rallied in response. Additionally, the country's "618" e-commerce shopping holiday showed growth over last year, which may have helped sentiment later in the month.
Source Fool.com
