Benzinga - Shares of several Chinese companies are trading higher Wednesday after Chinese regulators reportedly approved a capital raise for Alibaba (NYSE:BABA) Group Holding Ltd (NYSE: BABA) co-founder Jack Ma's Ant Group.
Some of the stocks making the biggest moves include Baidu Inc (NASDAQ: NASDAQ:BIDU), JD.com Inc (NASDAQ: JD) and Pinduoduo Inc (NASDAQ: PDD).
What Happened: According to a Bloomberg report, the China Banking and Insurance Regulatory Commission division approved the Ant Group consumer unit's plans to raise 10.5 billion yuan ($1.53 billion), signaling progress is being made on China's tech overhaul.
Ant Group has aimed to come into compliance since regulators began cracking down on its business in 2020. The regulatory support for the planned capital raise is a potential sign that the government is easing its stance.
"We view it as a signal on Ant’s regulatory rectification wrap-up," Leon Qi, an analyst with Daiwa Capital Markets Hong Kong, reportedly said.
Baidu, JD.com and Pinduoduo all operate in China's internet sector.
BIDU, JD, PDD Price Action: At time of publication, Baidu was up 6.34% at $126.28, JD was up 6.87% at $61.60 and Pinduoduo was up 5.04% at $88.79, according to Benzinga Pro.
Photo: simone.brunozzi from Flickr.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.