China Stocks Soar on Ant Group Update

BABA and JD are seeing a surge in options activity

Deputy Editor
Jan 4, 2023 at 3:06 PM
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Several China-based stocks are surging today, after Ant Group, of which Alibaba Group Holding Inc (NYSE:BABA) owns 33%, received approval from Chinese regulators to raise 10.5 billion yuan ($1.5 billion) for its consumer unit. This will make it easier for the fintech firm to restart plans towards an initial public offering (IPO), after regulators torched those plans in 2020. 

Alibaba stock is up 13% at $103.98 at last glance, and eyeing its largest daily gain since June. This bounce also has the stock breaking above $100 for the first time since late August. Year-over-year, the equity is still down 13.5%. Options bulls are eyeing BABA amid the surge, with 334,000 calls exchanged so far, or three times the intraday average. The weekly 1/6 105-strike call is the most active option, with new positions being opened. Inc (NASDAQ:JD) is seeing plenty of activity in the options pits as well, with 59,000 calls and 40,000 puts across the tape, or four times the average intraday amount. The March 75 call is the most popular. JD is up 14.8% at $66.21 at last check, and also trading at its highest levels since August. 

Not one to be left out, Pinduoduo Inc (NASDAQ:PDD) stock is on the rise as well, up 7.9% at $91.21 at last glance, and nearing its Dec. 13 one-year high of $93.16. PDD has plenty of support via daily moving averages, particularly its 40-day trendline, as well as what appears to be newfound support at the $80 level. 


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