When we wrote about this phenomenon last month, education companies 17 Education (NASDAQ:YQ), Gaotu Techedu (NYSE:GOTU) and iHuman (NYSE:IH) had also posted big gains over just a few days on equally heavy volume. All of those gains have held since then, indicating the change probably wasn’t driven by short-term speculators. Another company to post similar big gains this week was online grocer Dingdong (NYSE:DDL), whose shares have also risen 46% in the last two trading days.

But then they got hammered one painful blow at a time, driving most to all-time lows that were a tiny fraction of their IPO prices. One of two main factors behind those blows was a dispute between the U.S. and Chinese securities regulators that now looks largely resolved. The other factor was a wave of regulatory crackdowns, which now also appears to be largely finished, covering a wide range of sectors in China from education to online gaming.

With both of those issues now largely in the rear-view mirror, U.S.-listed Chinese stocks have finally begun to rebound from their all-time lows. The iShares MSCI China index is up 46% from a low at the end of October. Following the New Year rally, Dada’s American depositary shares (ADSs) are actually up fourfold from their late October low. But we should also note that even after the New Year rally, they are still only at their levels from about a year ago. And at their latest close of $13.19, the shares are still below their $16 IPO price from 2020, and well below their all-time high of $58 from late 2020.

In Dada’s case, investors may like the company for its relatively unique positioning as an intracity delivery specialist, which has far-lower costs than more-traditional delivery companies that offer both intracity and intercity services. That difference is reflected in Dada’s forward price-to-earnings (P/E) ratio, which stands at a lofty 55 following this week’s rally. By comparison, more traditional parcel delivery companies ZTO (NYSE:ZTO) and JD Logistics (2618.HK) trade at forward P/E ratios of 19 and 25, respectively.

Investors probably also like Dada for its close ties with JD.com (NASDAQ:JD), China’s second-largest e-commerce company that is also the parent of JD Logistics. JD.com received its stake when it merged its JDDJ local delivery unit with another similar company to form the current Dada Group. It raised that stake to 52.2% last year, giving it majority control of the company. Dada also counts U.S. retailing giant Walmart (NYSE:WMT) as its other major stakeholder with 9% of its stock.

It’s also worth pointing out that Dada’s overall revenue is growing strongly, up 41% in the third quarter and expected to rise another 30% to 35% in the fourth. That’s far better than most Chinese companies can say for those two periods, largely because Dada’s services were in huge demand when many people were forced to stay at home during lengthy Covid-related lockdowns last year. Dada lost 454.3 million yuan in the third quarter, though it’s expected to return to profitability next year.

Then there’s the “Impressive 2022 Year in Review” press release that we mentioned at the start of this article, which really contains very little impressive information and is why we’re only returning to it now. The release points to Dada’s partnerships with local supermarkets as one major feat, saying it now delivers groceries for 90 of China’s top 100 chains. It also notes that its delivery service using autonomous vehicles is taking off, fulfilling 60,000 orders to date.