PDD - Why Pinduoduo Baozun and Didi Stocks Rallied Tuesday
In the face of a far-reaching correction and ongoing bear market for technology companies, some of China's most widely followed stocks staged a broad relief rally on Tuesday. Like many technology stocks, these issues had fallen to multi-year lows, as investors considered a resurgence of the pandemic in China, an ongoing government regulatory crackdown, and the uncertainty of the overall economic picture. These same stocks showed signs of life again today, after a high-ranking government official gave a rare show of public support.
Shares of Baozun (NASDAQ: BZUN) gained as much as 14.7%, Pinduoduo (NASDAQ: PDD) climbed as much as 13.4%, and Didi Global (NYSE: DIDI) surged as much as 11.4%. As of market close, the trio were still trading higher, up 5.4%, 6.1%, and 1.3%, respectively.
China's Vice Premier Liu He, the country's top economic advisor, appeared at a symposium Tuesday, and said after the event that Beijing would support companies that are central to the digital economy in China. While details were scarce, the comments came in the wake of a year-long crackdown by government agencies that targeted some of the country's most well-known technology companies.
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Why Pinduoduo, Baozun, and Didi Stocks Rallied Tuesday