Shares of Chinese technology firms Baozun (NASDAQ: BZUN), Kanzhun Limited (NASDAQ: BZ), and GDS Holdings (NASDAQ: GDS) were rallying today, up 2.1%, 7.8%, and 17.6%, respectively, as of 12:20 p.m. ET.

Baozun and Kanzhun each reported earnings yesterday, but the across-the-board rally in these Chinese names likely has to do with optimism that China will amend or end its zero-COVID policy amid widespread protests across the country and bad incoming economic data. Interestingly, it appeared the companies that reported results in recent days rallied the least. 

The across-the-board rallies likely had to do with increasing investor confidence that China will throw in the towel and relax its highly restrictive zero-COVID policies sometime soon. Yesterday, Chinese authorities reported an increase in vaccination rates for the elderly and an increased vaccination push among that vulnerable population. Since that group has the highest risk of bad outcomes from COVID, it seemed to be a precursor to reopening. At the same time, a Chinese government official said that long-term and arbitrary lockdowns would be "wrongful," although more targeted policies would likely remain.

Continue reading

Source Fool.com