The U.S.-listed shares of Alibaba Group Holding Ltd. were ending a historically strong month on a high note Wednesday, as the China-based e-commerce giant was swept up in the hope that the country will loosen its strict zero-COVID policy.
climbed 11.6% in afternoon trading toward an 11-week high. The stock has run up 40.2% in November, which would be the second-best monthly performance since it went public in September 2019 and the best since the record monthly rally of 42.2% in October 2015.
Investors don’t seem to be focusing on the reports of protests in China over lockdowns resulting from the government’s zero-COVID policy or on data showing that manufacturing activity in the country contracted further in November.
Instead, they appear to be focusing on recent moves China has made regarding its COVID policy, including renewing a push to vaccinate the elderly and reports that lockdown measures in the city of Zhengzhou have been lifted.
Also read: Alibaba stock pops earnings as cost cuts pay off
Alibaba’s stock was not the only one swept up in the COVID-relief rally. The Invesco Golden Dragon China exchange-traded fund
which tracks the American depositary shares (ADS) of China-based companies that only list in the U.S., has rocketed up 42.7% this month, which would more than double the previous monthly record rise of 20% in September 2007.
In comparison, the S&P 500
has risen 4.1% in November.
Within the Golden Dragon ETF, 52 of 65 equity components have gained ground in November, led by the 124% surge in the ADS of toy seller Miniso Group Holding Ltd.
and the 108% runup in the ADS of on-demand retail and delivery company Dada Nexus Ltd.
Among other more active Golden Dragon components, the ADS of electric-vehicle maker Nio Inc.
rose 32.7% this month, while those of Bilibili Inc.
shot up 96.1%, Tencent Music Entertainment Group
rose 91.8% and Pinduoduo Inc.
went up 52.7%.
Among other EV makers, shares of XPeng Inc.
have gone up 65.2% and shares of Li Auto Inc.
have risen 64.9% month to date.
Also read: XPeng stock rockets toward record rally as bulls brush off bad results, outlook.
Elsewhere, the ADS of JD.com Inc.
jumped 55.9% in November and those of iQIYI Inc.
went up 48%.
Meanwhile, the biggest month-to-date decliner was stainless-steel pipe and tube maker Huadi International Group Co.
whose shares have fallen 63.5%.