Alibaba (BABA) stock jumped in U.S. trading early Monday after the Chinese government pledged further economic stimulus. U.S.-listed shares of Chinese technology companies JD.com, Trip.com Group (TCOM) and Baidu (BIDU) also gained in early trading.
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American depositary receipts for Alibaba were up 6% at 91.17 in premarket trading on the stock market today. Alibaba’s e-commerce rival JD was up 8% at 40.12 while Chinese internet search leader Baidu gained 6% at 91.35. Travel booking company Trip.com, which was the IBD Stock of the Day Friday, was up 8% in premarket moves, pointing toward a breakout.
The gains come after the Politburo, China’s top decision-making body, pledged earlier in the day to implement more proactive fiscal policy and a “moderately loose” monetary policy next year, according to the Wall Street Journal. Morgan Stanley economists called the Politburo statement “even more positive,” as quoted by the Wall Street Journal, than language in September that helped launch a rally for China stocks.
Alibaba Stock: Up 11% This Year
China’s tech stocks have bounced around in recent months, driven by debate about how far China would go with stimulus to boost its flagging economy. Alibaba stock rallied 27% in late September as government officials first rolled out stimulus plans. The Chinese e-commerce giant lost 8% in October trading and 10% last month, however.
Alibaba stock has gained 11% overall this year. E-commerce rival JD rode a similar surge in the fall – with a lesser overall pullback in recent weeks – to gain 28.7% this year.
Both Alibaba and JD remain well below highs from late 2020 and early 2021, respectively. Alibaba in particular was hurt by a government crackdown on tech firms in 2020.
Baidu stock has lost 27% this year.
Trip.com Stock Breaks Out
The latest stimulus news from China offered a boost Trip.com Group, which was already one of the top performers among U.S.-listed China tech stocks.
Trip.com’s early gain put its on track for a breakout above a 69.67 consolidation buy point, according to MarketSurge pattern recognition.
The company, which operates the largest travel booking website in China as well as international-focused sites, has gained 92% already this year, helped by the country’s travel recovery following Covid restrictions.
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