Chinese stocks soaring despite regulatory crackdowns against tech industry

Yahoo Finance reporter Ines Ferre joins Yahoo Finance Live to discuss the impressive performance of several Chinese stocks amid regulatory scrutiny of the country’s tech industry.

Video Transcript

SEANA SMITH: Didi closing up just around 24%.

INES FERRE: Yeah, that’s right, Seana. Still more than 85% off of its all-time highs from last year. But the big headline here is that those regulatory crackdowns in China against the tech industry, those seem to be– appear to be in the rear view mirror, with regulators, according to “The Wall Street Journal,” almost concluding their investigation into Didi, the ridesharing company.

And remember that Didi has been sort of the poster child for regulatory crackdowns for also a delisting because it will be delisting off of the New York Stock Exchange. So, right now, the stock today gained more than 24%. Still, though, very far off of those $16 a share, more than $16 that the company was trading at last year.

But keep in mind also that the lockdowns in China are easing and that the momentum for these stocks was building as those lockdowns were easing, because there is a concern of a slowdown in China because of these lockdowns. So perhaps these regulatory crackdowns, some experts are saying perhaps they were just going too far. And so this is a way to sort of grease the economy because there were layoffs that were associated with these crackdowns.