Alibaba Stock Jumps After Being Left Off U.S. Blacklist

Alibaba stock jumped Thursday on news the Trump administration decided against barring Americans from investing in a number of key China internet companies.

In addition to Alibaba (BABA), other China stocks kept off a U.S. blacklist include Tencent Holdings (TCEHY) and Baidu (BIDU).

Alibaba stock jumped 4%, near 244.50, during afternoon trading on the stock market today. Tencent climbed 3.6%, near 81.25, while Baidu jumped 7.3%, near 254.50.

In recent weeks, State and Defense Department officials have discussed expanding a blacklist of companies prohibited to U.S. investments over alleged ties to China’s military and security services.

But the Treasury Department blocked a Pentagon effort to add Alibaba, Tencent and Baidu on grounds they aided the military, said a report from the Wall Street Journal.

Along With Alibaba Stock, Others Get A Lift

Other China stocks getting a lift include Bilibili (BILI), Pinduoduo (PDD) and (JD). Bilibili shares leapt 4.2%, near 124.25. Pinduoduo climbed 2.8%, near 169.25. However, JD stock dipped 1.2%, near 89.35.

President Donald Trump has maintained a confrontational stance on China, using a combination of sanctions, tariffs, executive orders and blacklists in hopes of winning concessions on a variety of issues, including trade and national security.

But Treasury Secretary Steven Mnuchin, who has taken a more dovish stance on China, pushed back, stopping the plan. Mnuchin reportedly believed including Alibaba stock and other major companies would destabilize markets and create economic fallout.

Alibaba and Tencent count as China’s two most valuable publicly traded companies, with a combined market valuation of $1.3 trillion. Widely held by U.S. and global investors, the stocks weigh heavily on indexes. Alibaba stock, however is below its record high and trades below its 50-day moving average.

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Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.


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