Pinduoduo and JD.com jumped by more than 6% on Wednesday
Nasdaq Golden Dragon China Index is still down 18% this year
Chinese stocks traded in the U.S. got a boost as dip buyers helped halt a five-day losing streak after the shares rollercoastered during the Asia trading day.
American depositary receipts for technology giants Pinduoduo Inc. and JD.com Inc. both rose by more than 6% on Wednesday. Other large-cap China firms including Alibaba Group Holdings Ltd., NetEase Inc. and Baidu Inc. all closed higher by 3.5% or more. The Nasdaq Golden Dragon China Index climbed 6.4%, its biggest jump since January.
The rally in U.S. hours follows a volatile day in Asia for shares listed in Hong Kong and China. Rising inflation, heightened tensions between the U.S. and China and the exclusion of a firm from Norway’s sovereign wealth fund have added to investors’ worries. The Hang Seng Index and CSI 300 Index saw intraday declines of 3% or more before an afternoon surge cut the losses to less than 1% by the close.