Spark Global Limited Reports:
Alibaba shares rose nearly 10 percent on Thursday after news that U.S. President Joe Biden and Chinese President Xi Jinping would meet later this year raised expectations that they could ease tensions between the world’s largest economies.
Shares in the Chinese e-commerce giant rose as much as 9.8 per cent to $158.29 before paring gains to 8.5 per cent. The boost sent gold prices to their highest level since mid-September.
Alibaba’s stock has also caught the eye of retail investors, with Swaggy Stocks being the second most popular item on Reddit’s Wall Street betting forum.
The United States and China have agreed in principle to hold a virtual meeting between Biden and Xi jinping by 2021, Reuters reported on Wednesday, citing a senior U.S. government official. Earlier on Wednesday, Jake Sullivan, US national security adviser, was reported to have held his first face-to-face meeting with Yang Jiechi, China’s top diplomat, since an unusual public airing of grievances in March.
Since taking office, Biden has maintained a key component of the trump administration’s hard-line trade policy toward China. On Monday, Katherine Tai, the United States trade representative, said the White House wanted to restart trade talks with China but would keep tariffs high for now.
Other issues have also strained U.S.-China relations recently, including Beijing’s threats against Taiwan, its claims in the South China Sea and its treatment of the Uighur minority.
“Investors should understand that cooperation between the U.S. and China is good for global equity markets,” Naeem Aslam, chief market analyst at AvaTrade, said in a note.
Meanwhile, Alibaba and other Chinese stocks listed in the United States also suffered during the year as Beijing stepped up a regulatory crackdown on a range of companies to reform a variety of business and social practices. Securities and Exchange Commission Commissioner Gary Gensler said last month that he believes China-related companies aren’t providing enough information about the risks they and U.S. investors face.
The crackdown by Chinese regulators has intensified since late 2020, when Alibaba founder Jack Ma made comments critical of Chinese institutions. His financial services platform, Ant Group, later pulled out of ipos in Shanghai and Hong Kong under pressure from the government.
Reprint indicated source：Spark Global Limited information