Baidu ( NASDAQ: BIDU ), Alibaba ( NYSE: BABA ) and JD.com ( NASDAQ: JD ) rose early Thursday as Bloomberg reported that China is considering letting local governments sell up to $220B in bonds aimed at infrastructure spending to boost the economy.
The news outlet, citing people familiar with the discussions, noted that this would be the first time bonds are sold before the start of the year. Additionally, the $220B or 1.5 trillion yuan in sales would come from next year's quota.
The country has also said it would maintain its efforts to boost car sales.
Separately on Thursday, Hong Kong said that it would suspend its flight ban if the planes carried passengers infected with COVID-19, citing "peak season" for overseas students returning to the country, according to the South China Morning Post .
Baidu ( BIDU ) shares gained nearly 1% in premarket trading, while Alibaba ( BABA ) rose 0.5% . Other Chinese listed ADRs also rose on the news, including near 2% gains for Pinduoduo ( PDD ) and JD.com ( JD ), while Bilibili ( BILI ), Kingsoft Cloud Holdings and NetEase ( NTES ) saw more modest gains.
On Wednesday, investment firm UBS raised its price target on Alibaba ( BABA ) to $140 from $130, noting the company's business showed some signs of recovery in June and there is "more to come" in the second half of this year .
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Baidu, Alibaba, JD.com rise as China considers $220B stimulus to boost economy: report