Alibaba Stock Moves 5% higher Upon Rumors Of Reopening Of Chinese Economy
During the Tuesday trading session, Alibaba stock moved 5.2% higher and touched the $80 price level. This positivity in the Alibaba (BABA) stock came after news that China will be ending its COVID-19 lockdowns as soon as possible. As a result of this positive news, all the major Chinese stocks were trading higher, which meant more consumer demand and opening of the Chinese economy.
In addition, the protests happening across China have also slowed down, which also added to the positive sentiment. It seems that the ruling party of China is finally ready to listen to the concerns of the protestors.
According to experts, the end of the lockdown will be a major positive push for all Chinese stocks (local as well as international).
Broad Rally In Chinese Stocks Is Ahead
Before the Chinese officials move towards ending of lockdown, they have several policies on the table. One such policy is to increase the vaccination rate of the elderly. Currently, the vaccination rate of this segment of the population is at 60% only. On the other hand, the vaccination rate of the general population stands at 90%, which tells us that there is an improvement to be made.
However, regardless of the policy route taken by China, one thing is for certain... They know that announcing tough restrictions to curb COVID-19 will backfire and could turn the public against the government. And at the end of the day, it wouldn't be in anyone's interest, so the chances of a tough COVID-19 lockdown continuing for long are very low.
Coming back to the top of Alibaba has been going through a tough time recently. For the most part, it has turned lower due to the regulators and government policies. But after this positive news, there's hope for the Alibaba bulls once again.
Similarly, other stocks such as Pinduoduo and JD are also enjoying healthy gains, just like Alibaba. And once we get the confirmed reports that China is open once again, it will lead to a broad rally in Chinese stocks.