Other tech shares have also gained sharply since Monday. TikTok’s rival Kuaishou advanced 1.2% on Tuesday, adding to a 5.1% increase in the prior session. Food delivery service Meituan increased 0.5% on Tuesday and is up 10% so far this week.
The gains followed a strong session for Chinese stocks on Wall Street on Monday, when the Nasdaq Golden Dragon China Index soared 5.4%.
“The headline sparked speculation that Beijing was ending the crackdown on the platform economy to support growth given mounting downside pressure on China growth,” said Ken Cheung, chief Asian foreign exchange strategist for Mizuho Bank.
However, it would take time to repair business confidence, he added.
Concerned about the worsening outlook, Beijing has reported that it will relax its yearlong crackdown on the tech sector — long a key growth driver and the main source of well-paid employment.
Key cities like Beijing and Shanghai have gradually reopened and lifted Covid restrictions, with daily life starting to return to normal.
Chinese equities are pricing in “the worst is over” as China reopens its economy, said Jeffrey Halley, senior market analyst for Oanda.