: China ADSs are flying as fading regulatory headwinds send iQIYI, NIO and Alibaba stocks surging

Chinese Vice-Premier Liu He, the country’s top economic official, said overnight that the government supported the development of the sector and public listings for technology companies, suggesting a crackdown on U.S.-listings of China-based tech giants was easing.

Among the more active American depositary shares (ADS), NIO Inc.’s
NIO,
+12.51%
charged up 11.1% in midday trading, and have soared 27.1% amid a four-day win streak, which followed a 22-month closing low last Thursday. Trading volume of 56.8 million shares made the stock the most actively traded on the NYSE.

Tuesday’s rally comes after BofA Securities turned bullish on NIO, citing valuation coupled with easing regulatory pressures. Read more about BofA’s upgrade of NIO.

Shares of iQIYI Inc.
IQ,
+6.71%,
which are among the most actively traded on the Nasdaq, ran up 5.6%, and have rocketed 35.3% amid a four-day win streak.

On Monday, the ADS shot up 14.8% after J.P. Morgan upgraded the streaming -video company, as well as a number of other China-based internet companies, as recent “significant uncertainties” have started abating on the back of recent regulatory announcements.

Alibaba Group Holding Ltd.’s ADS
BABA,
+4.97%
got a 4.4% bump in midday trading. J.P. Morgan’s Alex Yao pulled a bullish about-face on the ecommerce giant, double upgrading it to overweight from underweight on Monday, as he believes historically low valuation offers “attractive risk/reward” in an improving macro environment.

Among other companies Yao double upgraded on Monday, the U.S.-listed shares of Tencent Holdings Ltd.
TCEHY,
+3.33%
700,
+5.26%
rose 3.2%, Meituan
MPNGY,
+3.84%
3690,
+6.24%
advanced 3.2%, Pinduoduo Inc.
PDD,
+5.58%
ran up 4.9%, NetEase Inc.
NTES,
+0.66%
9999,
+6.40%
gained 0.3% and Dingdong Ltd.
DDL,
+2.64%
jumped 2.7%.

JD.com Inc.’s ADS
JD,
+1.71%
charged up 1.6%, and was also one of the most active on the Nasdaq, after the ecommerce company reported earlier Tuesday first-quarter profit and revenue that beat expectations by wide margins. The company was also upgraded by Yao, who raised the rating to neutral from underweight.

Elsewhere, share of Baidu.com
BIDU,
+3.40%
rose 3.0%, Bilibili Inc.
BILI,
+3.20%
gained 2.7% and Vipshop Holdings Ltd.
VIPS,
+3.62%
tacked on 3.4%.

Outside of tech, the ADS of education companies were also broadly higher, with TAL Education Group
TAL,
+4.64%
rallying 4.4%, New Oriental Education & Technology Group Inc.
EDU,
+4.55%
rising 4.2% and Gaotu Techedu Inc.
GOTU,
+2.22%
adding 3.0%.