Alibaba and Other Chinese Stocks Are Rallying Again. Why It Doesn’t Make Sense.

Chinese stocks rallied on Monday as investors continued to be optimistic that coronavirus rules would be eased, despite repeated messages from authorities that China would stay the course on “zero Covid” policies.

Major U.S.-listed Chinese stocks were higher in premarket trading, with


Alibaba


(ticker: BABA) rising 1.5%,


JD.com


(JD) 2% in the green, and


NIO


(NIO) jumping 3%. In Hong Kong trading, the


Hang Seng Index


surged 2.7%, led higher by a 4.1% upward move in the Hang Seng Tech Index. Futures tracking the


S&P 500


index were up 0.5%, by comparison.