Chinese internet stocks iQiyi (NASDAQ: IQ), Bilibili (NASDAQ: BILI), and Tencent Music Entertainment (NYSE: TME) rallied in a big way in December, rising 78.5%, 36.5%, and 18.1%, respectively, according to data from S&P Global Market Intelligence.

The main reason behind the synchronous moves higher was China's abrupt about-face from "zero-COVID" lockdowns to a rapid reopening last month. Tencent Music had already seen a massive rally in November, following its better-than-expected earnings report in mid-November, which explains its more muted rise relative to other Chinese stocks in December, despite a nice analyst upgrade. In addition, iQiyi had an exciting product release in December, while Bilibili announced some layoffs in a bid to boost its bottom line.

China stocks had sold off throughout 2022 as a result of zero-COVID lockdowns, which followed the prior year's sell-off that resulted from the government's crackdown on the nation's tech companies. That of course set the stage for the big rally when the government decided to reverse course on both counts.

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Source Fool.com