The U.S.-listed shares of China-based companies traded broadly higher Tuesday, as investors were emboldened by the major steps to be taken to lift COVID-19-lockdown measures in Shanghai.
The Invesco Golden Dragon China exchange-traded fund
charged up 4.6% in morning trading, with more than three-quarters of its active components enjoying gains, to buck the weakness in the broader stock market. That put the ETF (PGJ), which is comprised of U.S.-listed shares of companies based in the People’s Republic of China, on track for the highest close since May 4.
The PGJ’s most active component was electric vehicle-maker NIO Inc.’s stock
which ran up 4.3%. It has soared 18.1% amid a four-day win streak, and has rocketed 36.0% since closing at a 22-month low of $12.71 on May 11.
Also seeing heavy trading, shares of KE Holdings Inc.
shot up 10.9% after the housing transactions platform reported a wider-than-expected first-quarter loss but revenue that beat forecasts, while ecommerce giant Alibaba Group Holding Ltd.’s stock
Shanghai authorities said they will take measures on Wednesday to reopen Shanghai, China’s largest city, as the Associated Press reported. That fueled investor optimism for a quick rebound in country’s economy, which is the world’s second largest.
Among some other more-active American depositary shares (ADS) of China-based companies, Pinduoduo Inc.
ran up 5.9% toward a three-month high, and have soared 38.4% amid a four-day win streak. Benchmark analyst Fawne Jiang reiterated the buy rating and $85 stock price target, which implied about 66% upside from current levels, after the mobile marketplace had reported on Friday big profit and revenue beats for its first-quarter.
Elsewhere, the ADS of iQIYI Inc.
rose 1.8%, JD.com Inc.
climbed 5.7%, DiDi Global Inc.
tacked on 0.5%, Tencent Music Entertainment Group
advanced 2.3% and Bilibili Inc.
The Golden Dragon China ETF has dropped 21.9% year to date, while the S&P 500 has lost 13.6% and the Nasdaq has tumbled 23.1%.