Why Tencent Holdings Shares Jumped More Than 10% Tuesday

Tencent Holdings Ltd TCEHY shares closed Tuesday up nearly 11%. The Chinese internet firm's stock moved higher alongside several Chinese names following President Joe Biden's meeting with Xi Jinping. 

What Happened: According to a Financial Times report, Biden and Xi signaled on Tuesday that they intend to improve US-China relations in a meeting ahead of the G20 summit. It was the first in-person meeting between the two leaders due to China's strict zero-COVID policy.

China's technology sector continues to fight an uphill battle against regulatory crackdowns related to spikes in COVID-19 cases. Developments from the meeting seem to be outweighing concerns around continued lockdowns. 

Tencent also announced another round of layoffs on Tuesday, targeting its video streaming, gaming and cloud businesses.

Lastly, the National Bureau of Statistics released new data showing that online retail sales continued to pick up in China. 

Tencent is one of the most influential internet firms in China. The company is also the world's largest video game vendor.

See Also: Why Alibaba, Baidu, Bilibili, JD.Com And Pinduoduo Shares Are Skyrocketing

TCEHY Price Action: Tencent has a 52-week high of $65.36 and a 52-week low of $25.58.

The stock closed Tuesday up 10.9% at $37.03, according to Benzinga Pro.

Photo: courtesy of Tencent.