Alibaba and Bilibili stocks lead sharp rise in Chinese internet stocks

Internet-listed Chinese stocks rallied on Tuesday after Alibaba Group Holding Ltd. announced an expanded buyout program in what the Chinese e-commerce giant called “a sign of confidence in the company’s continued growth going forward.”

Additionally, Reuters reported on Tuesday that Chinese regulators have asked some Chinese companies that list their shares on U.S. stock exchanges to prepare for more audit requirements. The report, which cites several unnamed sources, says China is considering allowing US regulators to review audit working papers from Chinese companies that are not involved in collecting sensitive information.

U.S.-listed shares of Chinese companies have come under pressure recently, in part because the U.S. seeks to crack down on the auditing practices of foreign companies that list their shares on U.S. stock exchanges. Earlier in March, the Securities and Exchange Commission issued an update identifying five Chinese companies using accounting firms or branches that the Public Company Accounting Oversight Board was unable to fully inspect and investigate.

BABA from Alibaba,
+12.45%
U.S.-listed shares jumped more than 11% in Tuesday morning trading, while U.S.-listed shares of Bilibili Inc. BILI,
+22.96%
increased by more than 14%. Other big winners included US-listed shares of Pinduoduo Inc. PDD,
+17.97%,
up more than 11%; iQiyi Inc. QI,
+26.34%,
up more than 13%; as well as Baidu Inc. BIDU,
+6.24%
and Nio Inc. NIO,
+7.92%,
each up nearly 5%. Shares of JD.com Inc. JD,
+5.91%
are ahead by more than 3%.

The KraneShares CSI China Internet ETF KWEB,
+8.28%
is up more than 4% in Tuesday’s session.

Outside the Internet sector, other shares of Chinese companies listed in the United States also gained, including Yum China Holdings Inc. YUMC,
+6.75%,
which was one of five companies originally identified in the SEC notice. Its shares are up more than 6% on Tuesday.

About Nicole Harmon

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