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Chinese firms listed in the United States are poised for the third straight day of a rally, following China’s approval of several video games for the year.
Source: Bloomberg
BILI is up 4.25%, BABA up 9.34%, and JD up 6.87%.
The Nasdaq Golden Dragon China Index climbed by as much as 2.8%, continuing its 8.9% growth recorded in the past two days. Top gainers include Bilibili Inc., Alibaba Group Holding Ltd., and JD.com.
The rally comes after China adopted a softer stance on tech firms, following the crackdown which zeroed in on e-commerce, financial technology, and online education, among others.
Analysts believe the worst is behind in terms of earnings and regulations, as the gaming approvals indicate the country’s more supportive stance on the internet economy.
Strategists have noted upside risks such as the looser restrictions and the better-than-expected earnings, but downside risks include the country’s continued Covid Zero strategy.
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