Why DiDi Global, JD.com, and Alibaba Are Up Today
Shares of several Chinese stocks listed on U.S. exchanges jumped out of the gate this morning after the Chinese government said it intends to provide more stimulus for the economy. There has also been chatter recently that China may ease some of its harsher regulatory policies toward tech companies.
Shares of the large Chinese ride-hailing company DiDi Global (NYSE: DIDI) traded more than 7.5% higher as of 11 a.m. ET. Shares of JD.com (NASDAQ: JD) traded roughly 8.4% higher and shares of Alibaba Group Holding (NYSE: BABA) traded nearly 11% higher.
The Chinese government earlier today said it would support the Chinese economy and the development of Chinese tech companies. There are also rumors circulating that the government will soon meet with big tech companies to discuss potentially easing up on certain regulatory policies that have hurt Chinese stocks. Government officials said their goal with stimulus is to help the country reach its 5.5% gross domestic product (GDP) growth target this year, which many believe is looking more and more out of reach.
Source Fool.com
