TUYA - Why Chinese Stocks Popped on Thursday
Chinese stocks made some big moves on Thursday as the country moves closer to opening up its economy. There were minor official changes, like eliminating COVID-19 testing for access to some public places and a push to increase more of the elderly population to get vaccinated, but it will likely take most of next year to pull back from the "zero-COVID" strategy.
GDS Holdings (NASDAQ: GDS) jumped as much as 18.9%, Tuya (NYSE: TUYA) popped 20.5%, and Kingsoft Cloud Holdings (NASDAQ: KC) jumped 18.1%. It may not seem that data center and cloud companies GDS and Kingsoft or an artificial intelligence company like Tuya are impacted by restrictions, but when the overall economy slows, even digital products are impacted.
There have been major market swings in Chinese stocks as investors went from fearing the future in China to hoping that the economy will return to more normal levels. Three years of COVID restrictions have taken a toll on both the people of China and the Chinese economy.
For further details see:
Why Chinese Stocks Popped on Thursday