(Bloomberg) -- Chinese stocks listed in the U.S. may finally be getting a much needed dose of good news after state-backed funds were said to have entered the local market to buy shares in order to help stem declines that have accelerated in recent weeks.
American depositary receipts of large-cap technology stocks including Alibaba Group Holding Ltd., JD.com Inc. and Pinduoduo Inc. all gained in premarket trading Tuesday. Meanwhile, shares of embattled ride-hailing firm DiDi Global Inc. and search engine giant Baidu Inc. each rose by as much as 2%.
READ: China State Funds Said to Buy Stocks to Stem Worsening Rout (1)
The buying by China’s so-called “national team” comes as the domestic stock market reopened for trading after being closed for a week due to its annual Lunar New Year holiday. Prior to that break, the nation’s benchmark equity gauge had fallen into a bear market amid growing concerns about the economy and a resurgence of Covid-19 cases.
U.S. investors are hoping that the renewed support from state funds will also help halt the selloff seen by shares listed outside of Mainland China. The Nasdaq Golden Dragon China Index -- which tracks firms on U.S. exchanges that conduct a majority of their business in China -- has plunged more than 60% since rising to a record last year, including a drop of 8.6% to begin 2022.
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