Why Didi Global, Baozun, and GDS Holdings Were Up Big Today
Despite already having rallied in the early part of the week, Chinese tech companies Didi Global (NYSE: DIDI), Baozun (NASDAQ: BZUN), and GDS Holdings Limited (NASDAQ: GDS) skyrocketed again today, up 14.3%, 12.5%, and 8.8%, respectively, as of 1:31 p.m. ET.
Didi is a ride-sharing platform, Baozun is a software and logistics company that helps brands go direct to consumers with e-commerce, and GDS runs data centers for large internet, financial, and cloud companies. The thing they have in common is that they would all benefit from the Chinese government ending its regulatory campaign against its tech industry. While authorities had already signaled they would do so early this week, Wednesday brought another bit of news on that front.
Yesterday, China's gaming regulator approved 60 new video game licenses. This is a big deal, because video games had been one of the hardest-hit sectors by new regulations, after authorities became concerned over addiction among Chinese teens. The pause in gaming approvals had lasted eight months prior to April 30, when the first small batch was approved this year.
Source Fool.com
