China stocks such as Alibaba
) and Baidu
) are bouncing off bottoms after a yearlong slump, amid attractive valuations and expectations that regulations and policy hurdles have eased.
JD stock, which soared more than 10% Tuesday, is up more than 20% since Jan. 5, touching its 50-day line
. Alibaba stock is up 25% since rebounding off its low on Dec. 29. The China e-commerce giant has reclaimed its 50-day line, as has Baidu.
Another, Tencent Holdings
) is up 15% from its lows.
In addition, the Hong Kong's Hang Seng Tech Index climbed 5% Wednesday.
China Stocks Hammered In 2021
China stocks were hammered in 2021 amid a regulatory crackdown. Alibaba lost around 50% of its market value last year, as it also faced headwinds from concerns of slowing growth. Value on the Hang Seng Tech Index
eroded by roughly one-third in 2021.
China authorities, concerned about the growing power of its largest technology companies, this past year have been issuing antitrust and antimonopoly laws
. The regulatory tightening
started with a trickle, but intensified in terms of its duration, intensity and scope.
It's not just regulations that are causing trouble for China stocks. Economic fluctuations, supply-chain shortages, the pandemic, weak consumer demand and rising prices of raw materials have all applied pressure.
Alibaba stock jumped 4% to close at 137.41 on the stock market today
. JD edged down 0.5%, to 76.40. Baidu rose 1.7% to 159.36. And Tencent climbed 3.1% to finish at 62.56.