YMM - Why Chinese Tech Stocks Were Bouncing Back Today
After a three-day slide, Chinese tech stocks were recovering today. That followed the gains over the last two days in Chinese for-profit education stocks, which had previously plunged after the government said it would require the tutoring sector to become nonprofit companies.
Tutoring stocks like New Oriental Education and Tal Education Group started rebounding after nearly all of their value was wiped out in the sessions on Friday and Monday, and today much of the Chinese tech sector followed suit as news of the crackdown faded. Investors seemed to be eager to capitalize on the sell-off, anticipating that prices would only temporarily be depressed.
Among the tech winners today were JD.com (NASDAQ: JD) , which was up 8.5% at the close; GDS Holdings (NASDAQ: GDS) , which gained 15.8%; Full Truck Alliance (NYSE: YMM) , 13.5% higher; Pinduoduo (NASDAQ: PDD) , which was up 15.5%; and Vipshop Holdings (NYSE: VIPS) , which climbed 8.3%. At the same time, the iShares MSCI China ETF (NASDAQ: MCHI) was up 6.2%, showing Chinese stocks in general were having a strong rebound.
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Why Chinese Tech Stocks Were Bouncing Back Today