Chinese stocks are staging a comeback today after yesterday’s freefall. The sharp price decline was a result of President Xi Jinping further tightening his grip on power with a third term and the specter of former leader Hu Jintao being accosted out of the people’s Hall by security personnel.
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Chinese stocks have been whiplashed in recent times by delisting concerns, U.S. restrictions on chip exports, China’s strict COVID-19 policies, geopolitical tensions, and growth worries.
Major Chinese names across online retail and the EV space are rising today with BABA being the sole exception. The stock is now down nearly 23% over the past month and is down 2% today.
Nonetheless, investors seem to be shedding off initial jitters from Xi Jinping’s power move and becoming incrementally positive about its impact on growth. Additionally, China’s central bank is looking at ways to support the country’s economy which is also keeping investor sentiment buoyant.
Moreover, after seeing extreme volatility year-to-date, Chinese names seem to be possibly bottoming out.
The Direxion Daily FTSE China Bull 3x Shares ETF is up 4.98% today already.
Here are some stocks that could be affected by this news:
- Alibaba (NYSE:BABA)
- JD.Com (NASDAQ:JD)
- Baidu (NASDAQ:BIDU)
- NIO (NYSE:NIO)
- XPeng (NYSE:XPEV)
- Li Auto (NASDAQ:LI)
- Pinduoduo (NASDAQ:PDD)
- The Direxion Daily FTSE China Bull 3x Shares ETF (YINN)
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