Why China Stocks Tencent, NetEase, and Hello Group Were Gaining Today
Shares of Chinese stocks were flying higher today as several different news items propelled the ongoing rebound in the beaten-down sector.
First, investors are responding well to the first face-to-face meeting between U.S. President Joe Biden and Chinese President Xi Jinping, which is fueling hopes that tensions between the two countries will subside. In recent years, the U.S. has threatened to delist Chinese stocks that trade in the U.S. if China does not allow U.S. auditors to examine their books, though there have been signs lately that the delistings will not go through.
Meanwhile, China has also begun to pull back on COVID-19-related travel restrictions, though most of its zero-COVID policy remains in place, and the country introduced a new set of policies to help stabilize the ailing real estate sector, showing that a crackdown on real estate may have run its course. Investors might be thinking that development bodes well for the tech sector, which has also struggled under a Beijing crackdown, though that could be starting to reverse as Chinese stocks were decimated by the moves.
Source Fool.com
