Alibaba Group Holding Ltd (OTCMKTS: BABAF) shares are reportedly doing well. Thanks to the improved lateral relationship between the U.S. and its Chinese counterpart, the stock market in both nations witnessed a positive sign. The S&P 500, NASDAQ, and Dow, having recorded gains, were in the green. Likewise, the NASDAQ 100 had many stocks in the green. Also performing well were the Chinese stocks.
Alibaba Group Holding Ltd shares were reportedly up by over 8%.
Alibaba Group Holding Ltd shareholders had every reason to be happy. As on afternoon trade, the stock spiked over 8%. According to industry experts, the seemingly improving diplomatic relations between the U.S. and China has directly impacted the stock market in both countries. Alibaba Group Holding Ltd shares closed 0.7% higher.
Leaders of the nations are expected to meet by the end of this year; the meeting will be virtual
Last month China’s President Xi Jinping and his U.S. counterpart President Joe Biden participated in a virtual meeting. News that the two nations’ leaders have agreed to meet by the end of this year is doing the rounds in the various media. According to reports, the meeting will be virtual, and it will be a follow-up meeting. It is speculated that the two leaders will negociate various issues. Meanwhile, in other news, it is reported that White House National security advisor Jake Sullivan and senior Chinese foreign policy advisor Yang Jiechi met in Zurich earlier this week. The same makes us believe that the strategic relationship between the two world powers is only improving.
According to market watchers, the two leaders’ meeting could translate into less pressure on the Chinese companies listed on the U.S. stock exchange. The news saw shares of companies like Alibaba Group Holding Ltd, Tencent Holdings ADR (OTCMKTS: TCEHY), Nio Inc – ADR (NYSE: NIO), and DiDi Global Inc – ADR (NYSE: DIDI) performing well. A market analyst stated that shares of Alibaba Group Holding Ltd slumped to about 10% last month due to regulatory issues imposed by the Chinese Government. However, the recent development is a positive sign for both the economies and the share markets.
In other news, it is known that in the markets in China and Hong Kong, shares of several of the real estate sector are not performing as expected.
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