DIDI - BABA PDD BIDU DIDI: Why Are Chinese Stocks Up Today?
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Chinese stocks Alibaba (NYSE:BABA), Pinduoduo (NASDAQ:PDD) and Baidu (NASDAQ:BIDU) are climbing today, likely due to a number of factors. These include a lift on certain Covid-19 restrictions in Beijing and a possible suspension of U.S. tariffs for Chinese goods.
Wall Street may also be viewing these stocks more positively after some good news for Didi Global (NYSE:DIDI). Recent reports say the Chinese government will allow the beleaguered ridesharing company to resume accepting new customers. Now, investors seem less worried about the impact of China’s policies on its companies.
Here’s what investors should know about Chinese stocks moving forward.
Chinese Stocks: Lifting Covid-19 Restrictions and Tariffs
Over the weekend, Beijing announced that it would allow customers to eat inside restaurants in the majority of the city, further easing Covid-19 restrictions. The capital city will also lift traffic bans and permit normal work to resume, according to the Beijing Daily. In general, the number of Covid-19 cases has been slowly falling in Beijing and China in recent weeks.
An interview with U.S. Commerce Secretary Gina Raimondo yesterday also spelled positive news for Chinese stocks. Raimondo says President Joe Biden and his administration are considering eliminating tariffs on some Chinese products as a means to combat high U.S. inflation levels.
Finally, The Wall Street Journal reports that China’s government will allow users to download Didi’s app again. This will enable the company to gain new customers. Reportedly, government probes into the tech company are nearing an end.
DIDI stock is currently up 46% in early trading. Meanwhile, BABA, PDD and BIDU stocks are each rallying 9%, 10% and 3% respectively.
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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