Why JD.Com Stock Is Up 27% Over The Past Week

JD.Com Inc JD shares are trading higher by 2.36% during Monday’s session and are higher by 27% over the past week. Shares of U.S.-listed Chinese companies are trading higher on continued strength amid stimulus efforts. September PMI data beat estimates but factory activity fell, which may raise stimulus hopes.

What Happened: JD.com, one of China's largest e-commerce platforms, saw its stock soar by 27% over the past week, driven by several factors, including strong hopes for increased economic stimulus from the Chinese government and better-than-expected economic data.

Over the past week, JD.com's stock was propelled higher following the People’s Bank of China's aggressive monetary easing measures. The central bank cut the reserve requirement ratio (RRR) by 50 basis points, reducing it to 9.5%, which is set to inject around 1 trillion yuan ($140 billion) into the financial system.

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This increased liquidity provides banks with more capital to lend, potentially easing financial pressures on businesses like JD.com, which rely heavily on consumer spending and economic confidence to drive growth.

What Else: In addition to the RRR cut, the PBoC lowered key interest rates, including the seven-day repo rate and the 14-day reverse repo rate, marking the central bank's increasingly proactive stance toward stabilizing economic growth. The cuts come amid growing concerns about China’s economic slowdown, with the government clearly signaling its intent to bolster liquidity and stimulate demand.

Investors were further encouraged by the release of China's September PMI data. Although factory activity fell, signaling continued weakness in the industrial sector, the overall PMI beat expectations, fueling optimism that China's economy is not deteriorating as rapidly as feared.

The stronger-than-expected data, coupled with the prospect of further stimulus, sparked a rally in Chinese stocks across the board. JD.com, which is often seen as a barometer for China’s domestic consumption, benefitted from this shift in sentiment, with investors betting that more stimulus measures could lead to increased consumer spending on e-commerce platforms.

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Traders and investors can gain exposure to Baidu through KraneShares CSI China Internet ETF KWEB and iShares China Large-Cap ETF FXI.

How To Buy JD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in JD.com’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, JD has a 52-week high of $42.68 and a 52-week low of $20.82.