New Year's Day: Chinese ADSs on the Rise
Investors in a slew of Chinese companies were the recipients today of the spirit of the "red pocket."
It's traditional for the Chinese New Year to give money for good luck. Today, investors in a slew of Chinese companies were the recipients of that spirit of the "red pocket" as most Chinese companies listed in New York were on the rise.
Shares of 500.com (NYSE: WBAI), an online sports lottery service provider in China, jumped nearly 20 percent to $15.70 per share in late afternoon trading in New York, making it the biggest gainer today among the top 150 Chinese ADSs tracked by CapitalWatch.
Coming in second and third place, China Rapid Finance Ltd. (NYSE: XRF) and JP Holdings Ltd. (NYSE: JP) both soared 8 percent to close at $5.17 and $19.85 per share, respectively, while Jianpu Technology Inc. (NYSE:JT) rose nearly 6 percent to $7.28 per share.
Shares of Xunlei Ltd. (Nasdaq: XNET) rose nearly 3 percent to $14.34 per share, thanks to the rise in the price of Bitcoin back above $10,000. Companies in the FinTech industry also demonstrated strong performance.
Internet giant Baidu Inc. (Nasdaq: BIDU) and NetEase Inc. (Nasdaq: NTES) both climbed more than 3 percent to $248.20 and $309.57 per share, respectively.
The gains outstripped the broader markets as the Dow Jones Industrial Average closed up 1.2 percent and the Nasdaq climbed 1.6 percent.
In China, where the country has effectively shut down, stocks dipped on Wednesday morning, with investors cutting their risk exposure on the last trading day before the week-long Lunar New Year holiday, while Hong Kong shares extended their rebound with the Hang Seng Index closing up 2.3 percent.
China's stock markets will be closed between Feb. 15 and Feb. 21 because of the holiday. Hong Kong shares will halt trading on Thursday afternoon, and will resume trading on Tuesday, Feb 20.
As they leave on vacation, Chinese investors are hoping the U.S. stock market will stay strong during this long holiday, as it usually sets the tone for the Asian markets when they reopen.