Trip.com Group Limited (TCOM) saw its stock surge 5.65% in pre-market trading on Wednesday, as Chinese ADRs (American Depositary Receipts) experienced a broad rally. This upward movement comes despite the implementation of hefty new tariffs on Chinese goods by US President Donald Trump, which took effect the same day.
The travel services provider's stock climb is part of a larger trend among Chinese companies listed in the US. Other notable gainers included Bilibili, XPeng, and Alibaba, each rising around 6%. This widespread rally in Chinese ADRs suggests investors are looking beyond the immediate impact of the trade tensions.
The resilience of Chinese stocks in the face of escalating trade war measures may be attributed to reports that China's top leaders are planning to meet to discuss measures to boost the economy and stabilize capital markets. This proactive approach by Chinese policymakers, which may include initiatives such as export tax rebates and measures to boost domestic consumption, appears to be bolstering investor confidence in Chinese companies, including Trip.com Group.
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