Alibaba makes stunning rebound, surges 37% in one day
Alibaba (BABA) made a stunning rebound on Wednesday, closing 37% higher, its biggest one-day gain since 2014. The move added almost $80 billion to the Chinese e-commerce giant’s market cap in one day.
The comeback followed vows from Beijing to keep markets stable, hinting at an end to regulatory crackdowns. Shares of JD.com (JD), Pinduoduo (PDD), and Baidu (BIDU) also closed significantly higher.
Alibaba’s American depository shares had been pounded over the last several sessions. They touched a multi-year intraday low of $73.28 this week.
Chinese regulatory risks, Beijing’s alliance with Russia, and US disclosure requirements which pose a threat to the delisting of Chinese firms have all contributed to investors’ recent flee from Alibaba and its peers.
Earlier this week JPMorgan double downgraded Alibaba, JD.com, Pinduoduo and Baidu to UnderPerform, calling Chinese Internet names “un-investable” for the time being.
Chinese e-commerce and tech companies listed in the U.S. have declined significantly since last year after China’s regulators began cracking down on giants like Alibaba and JD.com.
Ines is a stock market reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre