Shares of Chinese retailers Alibaba and JD.com recorded an increase on Friday, following reports that the government is contemplating relaxing restrictions on foreign ownership of domestically listed companies. This development has led to a surge in investor confidence in both companies.
Alibaba, a multinational conglomerate specializing in e-commerce, saw a notable rise of 3.9% in Hong Kong. Its American depositary receipts (ticker: BABA) also experienced a significant climb of 4.8% during premarket trading. Meanwhile, JD.com (JD), an online platform for direct sales of goods, witnessed a 4% increase in early trading.
According to Bloomberg, there are indications that China may modify the limits on foreign ownership of publicly listed companies within the country. While these changes are yet to be officially confirmed, they hold the potential to bolster investor confidence in stock markets across Shanghai, Shenzhen, and Beijing.
In conclusion, the prospects of relaxed restrictions on foreign ownership have contributed to the positive performance of Alibaba and JD.com. These developments have further boosted investor optimism amid ongoing efforts to revitalize China's economy.