Why PDD Holdings, Baidu, and Yum China Stocks Keep Going Up

The rally in Chinese stocks entered its second week Wednesday morning, with shares of Temu owner PDD Holdings (NASDAQ: PDD) rising 6% through 10:10 a.m. ET. This was followed by internet search giant Baidu (NASDAQ: BIDU), which gained 3.9%, and Pizza Hut and KFC operator Yum China Holdings (NYSE: YUMC) bringing up the rear with a gain of 3.6%.The reason today, as it's been for the past week and more, is a series of subsidies and other stimulus measures announced by the Chinese government last week.With China's economy in contraction and looking likely to miss its target growth rate of 5% in 2024, China's central bank, the People's Bank of China (PBOC), announced multiple flavors of interest rate cuts to lower the cost of borrowing and, thereby, encourage spending. Interest rates are expected to fall by anywhere from 20 to 30 basis points, and home mortgage down payments will be capped at 15%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool