U.S.-listed China stocks rose on Wednesday, spurred by optimism over Beijing’s softening trade tensions with Washington following the latest comments from the Trump administration.
Alibaba Group Holding (NYSE:BABA), PDD Holdings Inc (NASDAQ:PDD), and Baidu, Inc (NASDAQ:BIDU) maintained their rally Wednesday.
Electric vehicle companies, including NIO Inc (NYSE:NIO), Li Auto Inc (NASDAQ:LI), and XPeng Inc (NYSE:XPEV), also noted strong upward momentum.
President Donald Trump hinted at a substantial reduction in tariff rates as he proposed to treat China fairly as its trading partner, Bloomberg reports on Wednesday.
Also Read: Temu And Shein To Raise Prices Amid US Tariffs, Slash Ad Spend On Apple, Meta
On Tuesday, Treasury Secretary Scott Bessent acknowledged during an investor summit the impracticability and mutual challenges of a tariff war with China.
Trump’s hint of retaining Federal Reserve Chair Jerome Powell also buoyed the spirits.
Additionally, Chinese trade flows exhibited momentum in April despite President Donald Trump’s tariff war against its trading partners.
Trump’s tariff relief on electronic products and pause of reciprocal tariffs against most countries posed a tailwind.
Separate reports indicated that China’s Xi Jinping is eyeing Europe as a key trading partner as it proposes to tap the strained U.S.-EU relations.
Investors can gain exposure to the stock rally via China ETFs trading in the U.S., including iShares China Large-Cap ETF (NYSE:FXI) and KraneShares Trust KraneShares CSI China Internet ETF (NYSE:KWEB).
Price Action: BABA stock gained 2.57% on Wednesday. PDD was up 2.08, BIDU up 2.88%.
Read Next:
Photo via Shutterstock