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Ali Baba (NYSE:BABA) the stock soared as much as 5% this morning and is now one of the top trends on social media. Many Chinese stocks, including the e-commerce giant, are rallying amid indications that China is easing its anti-coronavirus measures, allowing businesses to reopen.
Other U.S.-listed Chinese companies making significant progress and trending on social media today include electric vehicle maker Nio (NYSE:NIO), up 5.3%, online entertainment provider bilibili (NASDAQ:BILI), jumping 15%, and booming e-commerce business Pinduduo (NASDAQ:PDD), up 2%.
Meanwhile, Hong Kong’s Hang Seng Index rose more than 4% today.
Easing of anti-coronavirus restrictions in China
The Chinese government announced last weekend that negative coronavirus test results would no longer be required to ride trains and buses in two of China’s biggest cities, Beijing and Shenzhen. And in Shanghai, the country’s largest commercial and financial hub, “residents will no longer need a negative Covid test result to enter outdoor venues, including parks and scenic attractions”, CNN reported.
Additionally, at the end of last week, reports indicated that the government would relax its anti-coronavirus lockdown measures in the future. In addition, Beijing said it has significantly increased vaccination rates for Chinese citizens over 80 in recent weeks.
The performance of BABA shares
Partly because of what Morgan Stanley called China’s “clear path to reopening,” the company raised its rating on the Asian nation’s stocks from “overweight” to “equal weight.” Calling on investors to buy more Chinese stocks, the company predicted that Chinese corporate earnings estimates and domestic stock valuations would rise in the future.
In the last five days and the last month before today’s trading, shares of Alibaba traded in the United States have climbed 15% and 33%, respectively. However, they are still down 23% this year.
As of the date of publication, Larry Ramer has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.