Chinese tech stocks appreciated one of their best days in months as major names moved to the upside today. Statements from China’s finance body “vowed to ensure stability in capital markets.” Many of them trended on Stocktwits for the bulk of today. 👀
KE Holdings, a Chinese real estate platform, led the crowd with a 64% jump. It was joined by Pinduoduo (+56%), rideshare company DIDI (+42%), e-commerce giants $JD (+39%) and Alibaba (+36%), electric car company $NIO (+25%), among others.
These moves spawned big moves in two other trending tickers on Stocktwits — the KraneShares CSI China Internet ETF, which we have covered during the upheaval of big Chinese companies, added more than 39% today. However, on the flip, a leveraged China bear product called $YANG traded down 63% today.
It’s too early to declare an end to China’s “ideological spring cleaning” of tech giants, education companies, and entertainment players. It was this state-sponsored regulatory crackdown which destroyed trillions worth of shareholder value in the first place. We started covering mayhem in China in the aftermath of DIDI’s disaster IPO, which arguably set off a flurry of legal inquiries in China. Those crackdowns attacked the country’s largest corporations and attempted to dismantle big tech companies. 🔨
In November, we wrote that some of the Stocktwits community was excited for China tech, which looked poised for a breakout given optimism around earnings… but that didn’t go well. Now that the KraneShares CSI China Internet ETF has rallied 40%, it feels like things might be looking up. 🤷
But in the grand scheme of things, Chinese stocks are looking up in a different sense. They’re looking up at the falling candles behind them, remnants of a collapse in shareholder confidence in China. Although the CCP’s latest idea of a revolution might seem to be over (given the country’s comments today), the next campaign might not be far off. 💡
$KWEB is still down more than -63% (before today, it was down -80.4%) in the last year.