Trip.com Group Limited (TCOM) saw its stock surge 6.03% in after-hours trading on Monday, riding the wave of optimism following China's central bank's announcement of increased support for the country's stock market. The move comes as part of a broader rally in Chinese stocks and ADRs.
The People's Bank of China (PBOC) stated it would provide funding support to Central Huijin Investment Ltd., a sovereign wealth fund, to stabilize capital markets when necessary. This announcement triggered a significant uptick in Chinese stocks traded overseas, with some ETFs seeing double-digit gains. The FTSE China A50 Index Futures also extended its gains, rising 2.6%, further underscoring the positive sentiment in the Chinese market.
As a major player in China's online travel sector, Trip.com Group's stock benefited from this broader market rally. Investors appear to be betting on improved economic conditions and increased consumer spending in China, which could directly benefit travel-related companies. The PBOC's supportive stance is seen as a potential catalyst for economic growth and market stability, factors that could contribute to a more favorable operating environment for Trip.com Group in the coming months.
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