Alibaba, NIO stocks soar after report Ant Group OK’d to set up financial holding company

The U.S.-listed shares of China-based companies were seeing big and broad gains in premarket trading Friday, after Reuters reported that China’s central bank accepted Ant Group’s application to set up a financial holding company. That fueled hopes that China’s regulatory crackdown was easing. The iShares China Large-Cap exchange-traded fund jumped 4.1%. Among the more-active China American depositary shares (ADS), shares of Alibaba Group Holding Ltd. shot up 9.3%, NIO Inc. ran up 5.1%, Inc. climbed 9.2%, Pinduoduo Inc. powered up 6.8% and XPeng Inc. hiked up 6.7%. The FXI ETF has gained 0.1% over the past three months through Thursday, while the S&P 500 has dropped 16.9%.

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