Why Chinese Stocks Like XPeng and Dada Nexus Were on Fire Today

There's nothing like a large-scale stimulus plan to stimulate the prices of affected financial assets. That was the dynamic behind the widespread rise of Chinese stocks on Tuesday following the announcement of a package of measures aimed at juicing that massive economy.Investors clearly weren't all that picky about the stocks they piled into to take advantage of this stimulus plan. Electric vehicle (EV) makers Xpeng (NYSE: XPEV) and Nio (NYSE: NIO) both saw their American depositary receipts (ADRs) close the day nearly 12% higher, while delivery company Dada Nexus's (NASDAQ: DADA) American depositary shares (ADSs) rose by almost 14%. Outpacing all three was job-recruiting platform developer Kanzhun (NASDAQ: BZ), with a more-than 19% increase.While certain top-down government initiatives have been rolled out in the U.S. and in other Western markets, they are relatively uncommon (and tend to be enacted only in crises). The Chinese government is more heavy-handed and interventionist, and is often willing to impose programs on the country in order to boost the economy.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool