Why Baidu, Nio, and XPeng Stocks Popped Today
Tuesday is shaping up to be a be a good day to own Chinese tech stocks, as rumors continue to mount that Chinese President Xi Jinping's government is about to step into the stock market in a big (and good) way, to help reverse a slide in investor sentiment that has cost the Shanghai Composite Index about 18% over the last nine months.
Shares of popular Chinese internet search giant Baidu (NASDAQ: BIDU) are up 3.8% through 11:45 a.m. ET, while Chinese electric vehicle (EV) companies (NYSE: NIO) and XPeng (NYSE: XPEV) are up an even more optimistic 8.5% and 10.5%, respectively.
It's not even just these three stocks that are performing well today, either. "Battered Chinese stocks leapt to their largest one-day gain in two years," reported Reuters earlier this morning. President Xi is planning to have a sit-down with state securities regulators to talk about means of curbing short-selling of Chinese shares. At the same time, China's so-called "national team" of largely state-controlled investment funds is said to be planning to buy more shares of Chinese companies in an effort to prop up stock prices.
Source Fool.com
