Pinduoduo Inc (NASDAQ: PDD) shares are trading higher Tuesday, rebounding after falling Monday amid news of Xi Jinping's third term.
What Happened: The Central Committee of the Chinese Communist Party elected Xi as its general secretary for another five-year term. He was first elected in 2012 and his second term was due to end this year. Xi also named loyalists to the Politburo Standing Committee, which represents the core circle of power in the Communist Party of China.
Under Xi's leadership, China has cracked down on big tech companies citing data protection concerns. Xi has also stuck to his strict zero-COVID policy which has led to extended lockdowns in several Chinese cities while most of the world has reopened.
Investors seemed to be concerned about the potential for continued strict Chinese policy in the wake of Xi's re-election, but buyers are coming back into Chinese names on Tuesday.
Pinduoduo is the third-largest e-commerce platform by gross merchandise volume and the largest platform by active buyers in China.
From Last Week: Check Out What Whales Are Doing With PDD
PDD Price Action: Pinduoduo has a 52-week high of $73.02 and a 52-week low of $23.21.
The stock was up 5.69% at $46.99 at time of publication, according to Benzinga Pro.
Photo: jcx516 from Pixabay.
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