Baidu's stock is soaring 5.07% in intraday trading, outpacing its overnight gain of 4%, as Chinese ADRs rally despite the implementation of new US tariffs on Chinese goods. The surge comes as investors react positively to news of potential economic support measures from the Chinese government.
According to sources, China's top leaders are planning to convene a high-level meeting as early as Wednesday to discuss measures aimed at boosting the economy and stabilizing capital markets. This meeting, which is expected to include senior officials from the State Council and various regulatory bodies, is seen as a response to the escalating trade tensions with the United States.
The potential for supportive economic policies appears to be outweighing concerns over the new US tariffs, which include massive 104% duties on Chinese goods. Other Chinese tech giants are also seeing significant gains, with Alibaba and XPeng up 6%, and Li Auto rising 4% in overnight trading.
As investors await the outcome of the planned high-level meeting in China, the surge in Baidu's stock price reflects growing optimism about the resilience of Chinese tech companies in the face of ongoing trade tensions. The market will be closely watching for any concrete measures announced by Chinese authorities to support domestic consumption and stabilize capital markets.
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