Shares of several Chinese companies, including Alibaba Group Holding Ltd - ADR (NYSE:BABA) and DiDi Global Inc - ADR (NYSE:DIDI), are trading higher following news indicating China's state-backed investment funds may be buying local shares to help stem the recent declines.
Bloomberg reported that Chinese state-backed funds intervened in the stock market during Tuesday trading in China. The intervention, Bloomberg says, helped the Benchmark CSI 300 index stage a strong recovery from its biggest intraday drop since August 2021.
Bloomberg noted that Beijing is no stranger to intervening in markets when needed around significant events or dates. The Monday report cited a similar instance where Chinese funds stepped in to stem a market rout during the National People’s Congress in March 2021.
Alibaba is trading higher by 5% at $120.61.
DiDi Global is trading higher by 8.7% at $3.86.
