YMM - Why Chinese Stocks Alibaba Kanzhun and Full Truck Alliance Were Surging Today
Shares of many Chinese stocks -- among them, Alibaba (NYSE: BABA) , Kanzhun (NASDAQ: BZ) , and Full Truck Alliance (NYSE: YMM) -- were up strongly Monday even as U.S. indices were down. Those three stocks were trading higher by 1.9%, 6.4%, and 10.7%, respectively, as of 1:24 p.m. ET.
The broad gains among U.S.-listed Chinese stocks were likely propelled in part by some positive moves made by the Chinese government. Authorities announced measures to contain the decline in the country's massive property sector, and on Monday, Chinese President Xi Jinping and U.S. President Joe Biden met in person for the first time since Biden's election, a meeting that could perhaps pave the way for less strained relations between their two countries. Additionally, China appears to be relaxing some of its most intensive zero-COVID policies. Those news items combined to give a boost to the beaten-down valuations of Chinese stocks.
On Sunday, the People's Bank of China, in conjunction with the China Banking and Insurance Regulatory Commission, sent a directive to the country's financial institutions that featured 16 steps aimed at supporting the nation's property sector. Investment bank Jefferies estimated that the new measures would inject around $184 billion into the sector, which should stave off developer defaults for another year, allowing the healthiest developers to continue operating and preventing the whole sector from freezing up. Home prices across 100 Chinese cities have fallen for four straight months, threatening the country's economy.
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Why Chinese Stocks Alibaba, Kanzhun, and Full Truck Alliance Were Surging Today