Why Chinese Stocks Are Moving Higher Wednesday

Shares of several Chinese companies are trading higher. Chinese stocks may be rebounding Wednesday after facing selling pressure in recent sessions on lockdown concerns related to spikes in COVID-19 cases.

KE Holdings Inc BEKE, Li Auto Inc LI and Baidu Inc BIDU are among the stocks bouncing higher on Wednesday.

What Happened: COVID-19 cases have been rising in multiple districts throughout China. On Monday, Beijing officials urged residents of the Chaoyang district to stay at home, extending a request from the weekend. The Haizhu district in Guangzhou also extended its COVID-19 restrictions in some areas to Nov. 27, according to local reports.

Beijing, the capital of China, reported more than 1,400 new COVID cases on Tuesday, a record for the city. Several reports indicate that Beijing will require individuals to show a negative PCR test within the last 48 hours to enter public venues like shops, hotels and government offices.

The new restrictions come after Beijing reported three COVID-related deaths over the weekend, its first deaths reportedly caused by the virus since May.

Check This Out: Jim Cramer Says China's Vaccines 'Don't Work' But Xi Won't Admit It

BEKE, LI, BIDU Price Action: Chinese names are still down significantly since the start of the year.

At publication time, KE Holdings was up 5.65% at $14.87, Li Auto was up 4.36% at $17.46 and Baidu was up 1.01% at $96.08, according to Benzinga Pro.

Photo: Daniel Cukier from Flickr.

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