Why Baidu, Tencent Holdings, and Pinduoduo Skyrocketed Today
Shares of Chinese internet giants Baidu (NASDAQ: BIDU), Tencent Holdings (OTC: TCEHY) and Pinduoduo (NASDAQ: PDD) were rocketing skyward on Wednesday, up 25.9%, 25.8%, and -- wait for it -- 43.6%, respectively, as of 1:16 p.m. ET.
Those are some nice one-day gains. Of course, they also come after an unprecedented losing streak for Chinese stocks over the past week. Here's what turned their fortunes around.
Chinese stocks have been wrecked by a combination of factors. The Chinese economy is slowing after the government burst the bubble in its huge property sector last summer. Additionally, regulatory authorities have been dropping the hammer on the country's tech sector, continuing to roll out more regulations, fines, and rules on leading internet companies even more than a year after the regulatory crackdown started. Finally, tensions between Russia and Ukraine have investors fleeing Chinese stocks, given the uncertain alliance between China and Russia. The Securities and Exchange Commission (SEC) also flagged several Chinese companies for non-compliance with the Holding Foreign Companies Accountable Act, or HFCAA, in recent days. That only added to the spate of worries.
Source Fool.com
