Weibo (WB), the Chinese social media giant, saw its stock soar 5.04% in pre-market trading on Tuesday. This significant uptick comes amid a broader rally in Chinese ADRs, sparked by news of increased support from China's central bank for market stabilization efforts.
The People's Bank of China (PBOC) announced it would provide funding support to Central Huijin Investment Ltd., a sovereign wealth fund, to purchase more stocks when necessary. This move aims to safeguard the stability of China's capital markets, which have been under pressure due to various economic challenges. The central bank's commitment has triggered a positive sentiment across Chinese stocks listed in the U.S., with Weibo benefiting from this renewed investor confidence.
While Weibo wasn't specifically mentioned in the reports, other Chinese tech giants and ADRs experienced similar upward trends. Notable gainers included YINN, which surged 13.5% overnight, while companies like PDD Holdings, Alibaba, and NIO saw increases of over 2%. This widespread rally suggests a potential turnaround for Chinese stocks, with Weibo's pre-market performance indicating that investors are optimistic about its prospects in light of these supportive measures.
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