(Bloomberg) Bilibili Inc. stock jumped more than 7% on Wednesday, leading gains among Chinese peers listed in the US as Beijing toned down on the internet firms.
The improved sentiment came after China approved the second batch of video games, emphasizing a softened stance against its internet tech giants.
Other large-cap stocks, including Alibaba and JD.com, jumped, with gains of 5% and 4%, respectively.
The latest optimism comes after earlier reports indicated that Chinese regulators were concluding investigations into Didi Global Inc.
Aberdeen Asset Management investment director Adam Montanaro thinks that the worst has already passed for Chinese firms. He says the gaming approvals are a gesture that Beijing will continue to support the internet economy.
The gains in Chinese stocks happen when their US counterparts are under pressure due to concerns about a tighter economy. China is also reopening its cities from lockdowns, which is boosting sentiment.
Some analysts are still pessimistic, including DZ Bank AG’s Manuel Muehl. He says that the current optimism is premature, warning that China’s zero Covid-19 policy is a source of concern.
BILI is up +7.67%, BABA is up +4.43%, JD is up +3.98%.
