Shares of several large Chinese stocks traded on U.S. exchanges continued their ascent this week following positive news from Chinese regulators. In fact, Chinese stocks have had their best multiday rally in the 21st century this week.
Shares of e-commerce giant Alibaba (NYSE: BABA) traded about 5.5% higher today as of 10:20 a.m. EST. Meanwhile, shares of the ride-hailing company Didi Global (NYSE: DIDI) jumped more than 32%, and shares of TAL Education Group (NYSE: TAL) traded more than 16% higher.
After what has been a brutal year for Chinese stocks listed on U.S. exchanges, things looked as if they were getting worse last week when the U.S. Securities and Exchange Commission named five Chinese stocks that could possibly get delisted. The issue revolves around a decades-long feud between U.S. and Chinese regulators because Chinese companies are not allowed to have their active financial documents reviewed by U.S.-based accountants. Meanwhile, U.S. regulators passed a law in 2020 that says that companies that aren't audited by regulators for three years in a row can't trade on U.S. exchanges.
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Why Shares of Alibaba, Didi, and TAL Education Group Are Rising Today