Here's Why PDD Holdings Shares Are Rising

PDD Holdings Inc - ADR PDD shares are trading higher by 7.01% to $69.90 during Thursday's session. Shares of Chinese companies are trading higher after a private survey showed a growth in factory activity in May. House passage of a U.S. debt ceiling has also helped lift overall market sentiment.

Contradicting official data indicating a decline in factory output, a recent private survey reported a marginal expansion in China's manufacturing activity in May, as revealed by Bloomberg Markets. The Caixin manufacturing purchasing managers' index (PMI), which focuses primarily on smaller and export-oriented enterprises compared to the official PMI, climbed to 50.9 from 49.5 in April.

Per Bloomberg Markets, this rebound positioned the index above the critical 50 level that demarcates expansion from contraction, surprising economists surveyed by Bloomberg who had anticipated no change in the index.

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What Else?

Per a recent report by CNBC, COVID infections could reach as many as 65 million cases per week by the time the surge peaks at the end of June.

Respiratory disease specialist Zhong Nanshan shared data on the new wave of infections during a recent medical conference in Guangzhou, as reported by CNBC.

Per CNBC, Zhong Nanshan indicated that the wave, which commenced in late April, was expected, with his modeling suggesting a potential surge of around 40 million weekly infections in China. He further projected that by the end of June, the weekly number of infections would reach its peak at 65 million.

According to data from Benzinga Pro, PDD has a 52-week high of $106.38 and a 52-week low of $38.80.