Chinese e-commerce retailers JD.com Inc. JD, Pinduoduo Inc. PDD and Alibaba Group Holding Inc. BABA are among the biggest mega-cap gainers in premarket trading on Friday.
What Happened: These companies may have received a lift from the changing COVID-19 dynamics in China. The country has slightly relaxed COVID-19 curbs despite the rise in the number of cases recorded, media outlets said. The relaxations include reducing the quarantine for close contacts to seven days in a state facility and three days at home and the decision to stop recording secondary contacts.
Some of the strength may also be traced back to “Singles Day,” the biggest online shopping bonanza in China, which concludes Friday.
The event along with the “618” shopping festival contributed to roughly 12% of total online sales in China in 2021, according to a Nikkei report. This time around, expectations are muted, given the renewed outbreak of COVID-19 and softening of economic growth.
In premarket trading on Friday:
JD.com rose 6.67% to $49.10, according to Benzinga Pro data.
Alibaba added 3.81% to $72.43.
Pinduoduo soared 4.70% to $67.06.
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Image and article originally from www.benzinga.com. Read the original article here.