Alibaba (NYSE:BABA) stock climbed as much as 5% this morning and is one of the top trending tickers on social media today. Many Chinese stocks, including the e-commerce giant, are rallying amid indications China is easing its anti-coronavirus measures, enabling businesses to reopen.
Among the other U.S.-listed Chinese companies that are advancing meaningfully and trending on social media today are electric-vehicle maker Nio (NYSE:NIO), up 5.3%, online-entertainment provider Bilibili (NASDAQ:BILI), jumping 15%, and up-and-coming e-commerce company Pinduduo (NASDAQ:PDD), rising 2%.
Meanwhile, Hong Kong’s Hang Seng Index rallied more than 4% today.
China’s Easing of Anti-Coronavirus Restrictions
The Chinese government announced last weekend negative coronavirus test results would no longer be needed to ride trains and buses in two of China’s largest cities, Beijing and Shenzhen. And in Shanghai, the country’s biggest business and financial hub, “residents will no longer require a negative Covid test result to enter outdoor venues including parks and scenic attractions,” CNN reported.
Additionally, late last week, reports indicated the government would ease its tough anti-coronavirus lockdowns going forward. Further, Beijing reported that it had greatly increased the vaccination rates of Chinese citizens over the age of 80 in recent weeks.
The Performance of BABA Stock
Partly due to what Morgan Stanley called China’s “clear path set towards reopening,” the firm increased its rating on the Asian nation’s stocks to “overweight” from “equal weight.” Calling on investors to buy more Chinese stocks, the firm predicted the earnings estimates for Chinese companies and the valuations of the nation’s stocks would increase going forward.
In the last five days and the last month before today’s trading, Alibaba’s U.S.-traded shares have climbed 15% and 33%, respectively. However, they are still down 23% this year.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
