U.S.-listed shares of Chinese internet names were gaining in Tuesday’s premarket action amid indications that the Chinese government was getting a better hold on the COVID-19 situation in the country.
China continues to follow strict pandemic-prevention measures, and the country has seen various recent protests against these efforts. But on Tuesday, officials spoke of plans to boost vaccinations for the elderly, and they also talked down risks associated with the Omicron variant, according to The Wall Street Journal.
See also: China to hold media briefing on COVID policy and boost vaccinations for the elderly
These developments helped spark a rally in American depositary receipts for Chinese internet stocks, which have been swept up in the broader fervor around China’s COVID-19 policies.
Among big gainers in premarket activity Tuesday were U.S.-listed shares of Bilibili Inc.
up 10.3%, JD.com Inc.
up 7.3%, Baidu Inc.
up 6.4%, Alibaba Group Holding Ltd.
up 5.6%, and Huya Inc.
up 5.3%. Bilibili also reported third-quarter earnings Tuesday morning, showing revenue of RMB5.79 billion ($814.5 million), while analysts tracked by FactSet were expecting RMB5.74 billion.
The KraneShares CSI China Internet ETF
was up 5.6% premarket.
Shares of Chinese electric-vehicle companies were joining the rally was well, with Nio Inc.
up 4.6% and XPeng Inc.
up 5.4%. XPeng’s U.S.-listed shares declined 2.6% in Monday’s regular session following a downgrade from Jefferies.
See also: China EV ‘honeymoon’ is ending, Jefferies says; XPeng stock downgraded