Alibaba and other Chinese tech giants listed in the U.S. traded lower early Friday but only after surging during the previous session in an attempted rebound from what has been a rocky year.
Alibaba (ticker: BABA) fell 1.1% in premarket trading Friday after closing with a gain of nearly 10% on Thursday.
JD.com (JD) declined 1.6% after jumping 7.3% on Thursday.
Baidu (BIDU) was down 0.9%, coming off its 10.5% gain in the previous session, and
Bilibili (BILI) was down 2.6% after rising more than 12% on Thursday.
The Nasdaq Golden Dragon China Index, which is made up of Chinese companies with stocks publicly traded in the U.S., rose 9.4% on Thursday, itslargest climb since 2008, according to Bloomberg.
In an abbreviated Hong Kong trading session Friday, Alibaba rose 8.2%, JD.com rose 5.5%, Baidu jumped 8.3%, and Bilibili gained 7.8%.
Hang Seng Tech Index,
which tracks the Hong Kong-listed shares of China’s largest technology companies, rose 3.6% on Friday.
The reasons for the gains in shares of Chinese internet and technology companies were varied, with some market participants citing bargain-hunting, while others cited traders closing out short positions.
Whatever the reasons, the gains for Alibaba on Thursday lifted the stock off its yearly lows. It finished the session at $122.99, off its 2021 low of $111.96, a level it closed at on Dec. 3. The U.S. shares have declined 47% this year.
Alibaba, like much of the rest of the Chinese technology sector, has found itself squarely on the wrong side of regulators as President Xi Jinping tightens his grip on the country’s economy. Beijing has launched a crackdown aimed at enhancing regulations to boost online safety, antitrust and data security.
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