Why Alibaba, JD, Pinduoduo Are Ripping Higher On Tuesday

Top Chinese ecommerce companies — Alibaba Group Holding Limited BABA, JD.com Inc. JD and Pinduoduo Inc. PDD — were advancing in premarket trading on Tuesday.

What Happened: The gains came amid the Chinese health officials holding a COVID-19 briefing on Tuesday, where they pledged to ease restrictions so that people’s lives are not impacted.

In a briefing held in Beijing, officials of the National Health Commission said that lockdowns to contain the spread of COVID-19 will be lifted as soon as possible, reported CNN.

They also announced an action plan to increase vaccination rates among elderly people, as the government has cited the low rate as one of the main reasons for maintaining the strict curbs.

Stricter lockdown, while impacting the lives of people, has also left them with less to spend. Companies in COVID-19-hit regions have been forced to either shut down or operate under a closed-loop system.

Following the development, Hong Kong and Chinese stock markets rallied strongly.

Price Action: According to Benzinga Pro data, Alibaba shares jumped 5.75% to $80.24 in premarket trading. Peers JD and Pinduoduo advanced 7.15% and 5.44% to $53.48 and $78.08, respectively.

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