Whee! +37% on News from China

That is some crazy price action for a large cap, driven by news from China that the government’s regulatory crackdown on tech stocks is going to ease, and China is actively working with the US to avoid delisting of Chinese stocks.


China made a strong push to stabilize battered financial markets, promising to ease a regulatory crackdown, support property and technology companies and stimulate the economy.

Wednesday’s announcement offered the strongest statement yet that Beijing is loosening its grip on internet platforms, saying that efforts to “rectify” internet platform companies should be completed “as soon as possible.” It also promised investors more policy stability, after a year when markets were repeatedly surprised by sudden announcements on regulatory reform.

The statement promised that China has achieved positive progress in talks about Chinese companies listed in U.S. markets, adding that both sides are working to formulate a detailed cooperation plan.

Other points from the financial committee meeting:

  • Regulation of internet platform companies should be “standardized, transparent and predictable”…

  • Long-term institutional investors are welcome to increase shareholdings in Chinese companies…

  • Continuing economic development is the first priority of the Chinese Communist party…


Only two more days like this one and I’ll be back to even on my BABA investment, lol.