What's Going On With US Listed Chinese Stocks Alibaba, JD, Nio, Li Auto XPeng on Monday?

Chinese e-commerce juggernaut Alibaba Group Holding BABA maintained its stimulus-driven rally Monday.

As per SCMP, John Choi of Daiwa Securities expects e-commerce companies to be the key beneficiaries of further stimulus measures, which were trading below their three- and five-year averages.

The rally reflects improved investor sentiment backed by Beijing’s stimulus measures and strong fund inflows into Chinese and Hong Kong equity markets, aiding the chip sector, the Wall Street Journal reports.

Also Read: Taiwan Semiconductor’s 2-Nm Breakthrough Puts Taiwan a Decade Ahead of China’s Semiconductor Industry: Report

China’s semiconductor sector has suffered since the pandemic erupted in 2020. The pandemic disrupted its supply chains and prompted the world to rethink its dependence on the Asian country for semiconductor chips for smartphones, cars, PCs, and other electronic gadgets.

The U.S. semiconductor sanctions on China further hampered its prospects. The embargo made it difficult for Chinese hyperscalars like Alibaba and peers to procure the sophisticated AI chips made by Taiwan Semiconductor Manufacturing Co TSM for Nvidia Corp NVDA, impeding the country’s progress.

Other Chinese e-commerce stocks, including JD.com, Inc. JD, Baidu, Inc. BIDU, and PDD Holdings Inc. PDD, are trading higher Monday in anticipation of higher stimulus as the country returns from the National Day holidays.

Chinese electric vehicle stocks, including NIO Inc NIO, Li Auto Inc LI, XPeng Inc XPEV, and ZEEKR Intelligent Technology Holding ZK also saw gains Monday. The AI chips are also integral to the EV industry.

China could launch a fiscal stimulus of 1.5 trillion yuan-2 trillion yuan, equivalent to $212.8 billion-$283.7 billion, the Wall Street Journal cites UBS economists.

Investors can gain exposure to Alibaba, Baidu, and JD through the iShares China Large-Cap ETF FXI and the KraneShares CSI China Internet ETF KWEB.

Price Action: BABA stock is up by 2.27% to $117.12 in the premarket session at the last check on Monday. JD is up 1.23%, LI is up 4.32%, XPEV is up 2.89%

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Photo by Oleg Elkov via Shutterstock