Consent of the Chinese regulatory authority on Ant groups’ capital plan has implanted hope in investors. The optimism in investors resulted in a sudden American Depository Receipts price surge.
Since the IPO project of the Ant group was interrupted by the Chinese regulatory bodies in 2020, their approval on the Ant group’s capital plan, followed by the lifting up of zero covid policies lately, are indicating more lenient regulatory circumstances. Needless to say, these decisions have led to an abrupt surge in Chinese stock prices traded in the United States.
ADRs share of Alibaba, Baidu, JD.com, Trip.com, and NetEase rose by 13.1%, 10.6%, 14.7%, 6.8%, and 8.0%, respectively, right after the report.
The investors are also hopeful that the Chinese government will encourage private sector growth from now on.
Equity research analyst of China consumers Fawne Jiang has written in a note that “China has struck a notably accommodating tone in recent months, pivoting away from its stringent COVID controls and dialing back its regulations on previously highly depressed sectors. The recent Central Economic Work Conference has set the government’s priority for 2023 to revive consumption and support the private sector”.
- Published By Team Hongkong Journalist