Alibaba Group Holding Ltd. proved to be a major winner as U.S.-listed Chinese stocks advanced on Wednesday. The e-commerce giant’s stock gained as much as 7.5%; its biggest jump since November.
The company’s stock rise comes after it received approval for its fundraising plan for its Ant Group Co. business from Chinese regulators. This development has instilled hope in investors that China’s regulatory clampdown on internet-based businesses may finally be cooling down.
Competitors JD.com Inc. and Pinduoduo Inc. both advanced by over 6% during Wednesday’s session, with the Nasdaq Golden Dragon Index gaining over 5% to rise to its highest level in approximately four months.
Regulators approved a plan submitted by Alibaba CEO Jack Ma to raise 10.5 billion yuan ($1.5 billion) for its consumer unit. This notion indicates a warming of relations between Chinese regulators and the nation’s tech giants whereby officials have now placed economic growth as a national priority.
Following Wednesday’s growth, the Hang Seng China Enterprises Index, which tracks a group of leading Hong Kong-listed Chinese stocks, finished the day at its highest level since July.