Alibaba Group Holding Ltd (NYSE: BABA) jumped after U.S-listed Chinese stock received a boost. This change came after funds backed by the state purchased shares to cushion the decline that has been ongoing for the last few weeks.
As a result, companies such as Alibaba, Pinduoduo Inc (NASDAQ: PDE), and JD.com Inc (NASDAQ: JD) gained. Companies like Baidu Inc (NASDAQ: BIDU) and DiDi Global Inc, (NASDAQ: DIDI) also gained 2%. Before this, the country had shut down its domestic stock market for a week to celebrate the annual Lunar New Year.
Even before the country closed its markets, the stock market was not performing very well due to the increasing number of COVID infections and increased worry about the economy. U.S investors hope that China’s support for these companies could stop selling shares outside mainland China. Alibaba also had a jump after Softbank stated that they weren’t selling Alibaba shares and were not involved with the company registering other shares.
Reason Alibaba registered more shares
Analysts believe that Alibaba registered more shares because more investors want to convert U.SADRs to Hong Kong shares. For this reason, the company would have to make additional ADRs. After Alibaba stayed this, Alibaba jumped by more than 6.83%.
Additionally, Asian equity markets were green as most of them were up by 1% or more.
Meanwhile, Alibaba was previously down by 7%. Moreover, the company has filed an F6 form with the U.S Securities and Exchange Commission (SEC).
The FDA won’t approve a cancer drug from Eli Lilly And Co (NYSE: LLY)
The Wall Street Journal also reported that the Food and Drug Administration (FDA) only scrutinized an Eli Lilly And Co (NYSE: LLY) lung cancer drug because its tests were conducted in China. This move paints the regulator in a bad light as it seems to be restricting cancer medication for Americans because of political differences.
However, others point out that the tests were only carried out in China. Furthermore, the trials did not use diverse volunteers to represent the U.S population. Therefore, this did not make the results as reliable.
Lung cancer in the U.S is a problem for men and women from various ethnic backgrounds. However, the trial primarily focussed on men. They also used younger people, most of whom did not have a history of smoking which also didn’t reflect the U.S population.
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