U.S.-listed shares of Chinese stocks received a boost on Monday following reports of optimistic economic commentary from the government. China’s Politburo, under the leadership of President Xi Jinping, expressed confidence in the state of the economy during a Monday meeting. While the officials acknowledged the economic challenges faced by the company, they also highlighted the strong first-half performance.
The government also announced plans for additional policy support to further stimulate the economy. This news contributed to the positive sentiment surrounding Chinese stocks.
Impressive Gains for Video Platform Bilibili Inc. and Electric-Vehicle Maker Nio Inc.
Among the biggest gainers on U.S. exchanges were shares of video platform Bilibili Inc., which increased by more than 13%, and electric-vehicle maker Nio Inc., which saw an increase of over 12%. XPeng Inc.’s American depositary receipts rose by more than 10%, while fellow EV maker Li Auto Inc.’s ADRs experienced a smaller boost, up by more than 3%.
Shares of iQiyi Inc., another video platform, also performed well and were up by more than 7% in Monday afternoon trading. E-commerce giants JD.com Inc. and Alibaba Group Holding Ltd. saw their shares increase by more than 4%.
Other Noteworthy Performances
Internet powerhouse Baidu Inc. saw its shares rise by more than 5%, and live-streaming platform operator Huya Inc. experienced an increase of over 4%.
The KraneShares CSI China Internet ETF recorded a gain of about 5% during afternoon trading. Despite this increase, the ETF has declined by 2% so far this year, while the S&P 500 has advanced by approximately 19%.
Positive Sign for U.S. Companies Doing Business in China
The optimistic economic commentary from China has raised hopes for U.S. companies engaged in business activities in the country. Tesla Inc., for example, reported $5.7 billion in China revenue for its latest quarter, accounting for 23.0% of its overall revenue. This represents an increase from 21.0% in the previous quarter.
As the Chinese government expresses confidence in its economy and unveils plans for additional policy support, it is likely to have a positive impact on the performance of Chinese stocks and potentially benefit U.S. businesses operating in China.
Sources:
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