(Reuters) – U.S.-listed shares of Chinese companies jumped in premarket trading on Wednesday after China’s top policymaker said the country would roll out measures to boost the economy and keep its capital markets stable.
Separately, China’s securities regulator said it would continue to communicate with U.S. regulators and strive to reach an agreement on China-U.S. audit supervision cooperation as soon as possible.
China’s Vice Premier Liu He said Beijing will take policy steps favorable for its capital markets while cautiously unveiling measures that risk hurting markets.
U.S. listed shares of Pinduoduo jumped 31%, while JD.com and Alibaba were both up about 20% in premarket trading.
Didi Global, Baidu, Bilibili, Nio and Weibo also rose between 18% and 38%.
The speed at which Beijing has responded to this week’s selloff would suggest it does not want to let things drift out of control, said Russ Mould, investment director at AJ Bell.
“Its key goal is common prosperity and stock markets matter because a lot of Chinese retail investors have money in equities, so their wealth is at stake if shares are plummeting in value,” he said.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Saumyadeb Chakrabarty)
