(Bloomberg) Shares of Chinese giants including Alibaba, Pinduoduo, and JD.com rose on Tuesday as reports emerged that state backed funds were buying the shares.
The move by the Chinese state-backed funds is aimed at arresting stock decline, which has increased in the last few weeks.
The share buying targeted the so-called “national team” companies and happened after the country reopened from the annual Lunar New Year holiday.
Investors are betting that the entry of state funds will halt the selloff of shares outside Mainland China.
The stock buys happen after the Nasdaq Golden Dragon China index that tracks Chinese firms on US exchanges fell at least 60% from its record peak last year. The index is down by 8.6% this year.
BABA is up +4.62%, PDD is up +6.09%, DIDI is up +3.10%.
