Baba Stock: Alibaba Jumps As Restrictions Ease | Investor's … – Investor's Business Daily

BREAKING: Market Mixed As It Tries To Shake Off Two Down Weeks
China-based firms such as Alibaba (BABA) got a lift Wednesday after government officials signaled a softening of regulations for financial technology companies as Covid containment policies ease. BABA stock benefited in particular as the company’s fintech unit Ant Group won the OK from regulators to raise funds.
BABA stock jumped 13.3% to close at 104 on the stock market today. But the ripple effect helped JD.com (JD) leap 14.7% to 66.10. And Pinduoduo (PDD) climbed 7.7% to finish at 91.06.
Other China stocks climbing included Baidu (BIDU), up 10.6% to 131.76. Also, the KraneShares (KWEB) CSI China Internet ETF jumped 8.8% to 34.60. And electric-vehicle maker Nio (NIO) moved up 10.4% to 10.63.
Chinese regulators approved a plan that allows billionaire Jack Ma’s Ant Group to raise $1.5 billion for the financial technology company’s consumer finance unit. Ant is an affiliate of e-commerce giant Alibaba, which owns 33% of the company. Ant operates one of China’s two dominant mobile pay apps.
Initially revealed in a notice on Dec. 30, the approval by the China Banking and Insurance Regulatory Commission removed a key hurdle for Ant as it seeks to meet requirements from regulators following a crackdown on its business. That crackdown halted Ant’s plan for a massive initial public offering in 2020, and took a bite out of BABA stock.
The easing of Covid policies follows three years of restrictions. That included the ending of citywide lockdowns and restrictions on some of the country’s massive tech-manufacturing plants.
Alibaba, JD.com and Pinduoduo are the three largest e-commerce companies in China. In addition, Baidu is the search engine leader.
BABA stock holds a Composite Rating of 57 out of a possible 99. Its Relative Strength Rating is 41.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
YOU MAY ALSO LIKE:
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
How To Use The 10-Week Moving Average For Buying And Selling
Find The Best Long-Term Investments With IBD Long-Term Leaders
IBD Stocks On The Move: Watch For Breakouts Here
Inside The IBD 50: Top Stocks To Watch
1/04/2023 Futures fell overnight. Stocks rose Wednesday despite a Microsoft sell-off. Be wary of buying stocks on the first “blip” of…
1/04/2023 Futures fell overnight. Stocks rose Wednesday despite a Microsoft sell-off….
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2023 Investor’s Business Daily, LLC. All rights reserved

source