Callum Keown
Chinese tech stocks rallied early on Tuesday, as Alibaba, JD.com and Tencent all made impressive gains and Cathie Wood's ARK got back in the game.
The sector, which has been under pressure recently due to a wide-ranging regulation in China, enjoyed a sharp rebound as the regulatory outlook became clearer and investors looked for buying opportunities.
One such investor was seemingly Cathie Wood, whose ARK Invest snapped up 164,889 of JD.com's American depository receipts (ADRs). The company's Hong Kong-listed shares soared 15% on Tuesday after second-quarter earnings beat expectations. The ADRs were more than 7% up in premarket trading.
ARK's largest fund, ARK Innovation, dumped almost all its Chinese stocks at the end of July.
JD.com wasn't the only name surging early on Tuesday, Alibaba stock was 5% higher in premarket trading, after the e-commerce giant's Hong Kong shares rose 9.5%. Tencent stock climbed close to 9% in Hong Kong trading, while Baidu was 4% up in New York premarket trading.
Write to Callum Keown at callum.keown@dowjones.com
(END) Dow Jones Newswires
August 24, 2021 07:52 ET (11:52 GMT)
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