Investing.com – Stocks and ADRs of Chinese companies look set for a second consecutive day of gains on bargain hunting amid reports that Cathie Wood is back in the game for them.
Pinduoduo (NASDAQ:PDD) was up 11% in Tuesday’s premarket trading, JD.com (NASDAQ:JD) 8% and Didi (NYSE:DIDI) 6.7%. Tencent Music (NYSE:TME) gained 5.8% and Alibaba (NYSE:BABA) 5.2%.
Baidu (NASDAQ:BIDU) was higher by 4.7% as second-quarter revenue beat estimates.
The announcement of a share buyback worth up to $1 billion, meanwhile, had boosted the share price of Tencent Holdings (OTC:TCEHY) on Monday.
Stocks of electric vehicle manufacturers Nio (NYSE:NIO) and Xpeng (NYSE:XPEV) gained 3% and 2.2%, respectively.
Edtech shares, among the most battered of the lot, jumped too. Gaotu Techedu (NYSE:GOTU) and TAL Education (NYSE:TAL) rose 6% and 4.2% respectively.
Wood’s Ark Invest was lured back to Chinese stocks by JD.com’s robust second-quarter earnings, which were announced on Monday. Annual active customer accounts increased by 27% and revenue jumped 26% from a year ago at the Chinese ecommerce giant, which also said that it doesn't expect too big an impact on operations from the new regulatory initiatives published in recent weeks.
This was good enough for Wood, one of Wall Street's most enthusiastic backers of technology stocks, to get her ARK Invest fund to pick up some ADRs of JD.com.
U.S. investor interest in Chinese has recently wavered due to signs that the practices underpinning most Chinese listings in New York may be banned by either U.S. or Chinese regulators.
Regulators in China are currently combing their handling of customer data and edtech companies have been advised to go non-profit. China’s President Xi Jinping has advised the country’s rich businessmen to share their wealth with others. The Security and Exchanges Commission head Gary Gensler has meanwhile called for extra transparency in the accounts of Chinese companies, which some fear may be a price too high for Chinese companies to pay for their U.S. listings.