KC - Why Chinese Stocks Jumped on Tuesday
Shares of Chinese and other international companies jumped sharply on Tuesday as hope spread that China's zero-COVID policy may be coming to a close. Rumors are floating that a government committee has been formed to study a plan for fully reopening China in March 2023.
Markets across Asia were trading higher and some notable names were moving in U.S. markets today. Tencent (OTC: TCEHY) jumped as much as 11% in trading, Kingsoft Cloud Holdings (NASDAQ: KC) was up as much as 15.4%, GDS Holdings (NASDAQ: GDS) was up 18.7%, and Chindata Group Holdings (NASDAQ: CD) was up 13% at its peak. Shares of the companies are trading 9.4%, 9.5%, 10.9%, and 5.8% higher at 12:30 p.m. ET.
China's zero-COVID policy has been responsible for extended citywide shutdowns across the country in the past three years and has impacted both domestic demand as well as exports to the rest of the world. So, when rumors spread that a committee will be looking into how to end the lockdowns, the market cheered.
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Why Chinese Stocks Jumped on Tuesday