Chinese Tech Stock Recovery Extends to U.S. Premarket Trading
(Bloomberg) -- Chinese stocks listed in the U.S. rallied in premarket trading, led by gains in JD.com Inc. and Pinduoduo Inc., after technology shares extended their rebound in Hong Kong following a months-long rout.
Shares in JD climbed 8.8% at 5:07 a.m. in New York after the e-commerce giant reported revenue that beat estimates, while Pinduoduo surged 11% before its results expected on Tuesday. NetEase Inc., Baidu Inc. and Alibaba Group Holding Ltd. were among several other American depositary receipts rising.
The rally in Chinese shares on Tuesday lifted sentiment within emerging markets, pushing MSCI Inc.’s benchmark for developing-nation stocks up the most since July 29. The gains also helped boost investors’ mood globally, although it wasn’t enough to spark a rally in Nasdaq 100 futures, which were inching 0.3% higher after the underlying index finished Monday at a record high.
Optimism is picking up in Chinese markets after a selloff triggered by Beijing’s regulatory crackdown on the technology sector. Investors including Cathie Wood are back into the market to take advantage of the lower valuations. Despite this week’s rebound, Hang Seng Tech Index is still down 41% from its February peak, while the Nasdaq Golden Dragon China Index is 50% lower.
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