U.S.-listed China stocks jump on fresh economic support signals

Published 09/04/2025, 11:18
© Reuters.

Investing.com -- Shares of Alibaba Group Holdings Ltd ADR (NYSE:BABA) surged 5.9% in pre-market trading today following Reuters' report that China's top leaders are planning to meet to discuss measures aimed at boosting the economy and stabilizing capital markets.

This move comes as tensions from the trade war with the United States intensify, prompting concerns over economic growth and market stability. 

In response to the escalation of trade disputes, which included a near doubling of U.S. duties on imports from China to 104% last week, Chinese officials are convening to formulate strategies to mitigate the impact. The meeting, expected to take place as soon as Wednesday, will involve senior officials from the State Council, or cabinet, along with representatives from various government and regulatory bodies, the report added.

The agenda is set to focus on enhancing domestic consumption and bolstering capital markets. The initiatives under consideration are designed to address the potential one to two percentage point decline in growth forecasted for China's economy this year, as a direct consequence of the trade war.

Analysts have raised concerns about increasing industrial overcapacity, the threat to domestic employment, and the amplification of deflationary pressures. Measures such as improving export tax rebates for domestic companies are also expected to be part of the discussions.

Other Chinese companies, like PDD Holdings Inc DRC (NASDAQ:PDD) and Baidu Inc (NASDAQ:BIDU), also saw their share prices rise today as investors appear to be encouraged by the proactive steps the Chinese government is taking to counteract the adverse effects of the trade tensions on their economy and financial markets.

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