By Liz Moyer
Investing.com -- Shares of Chinese internet companies bounced on Tuesday after movement to reopen Shanghai after weeks of Covid-19 related lockdowns.
According to multiple reports, Shanghai officials have said low-risk residential areas will reopen and public transportation will restart on Wednesday. The government there also announced a multi-point plan to boost its recovery, including business tax cuts and subsidies for people to buy electric cars. Further boosting sentiment, manufacturing data in China was better than expected, a welcome sign as more cities end lockdowns.
Shares or ADRs of e-commerce companies Pinduoduo (NASDAQ:PDD) rose 4%, JD.com Inc Adr (NASDAQ:JD) 6% and Alibaba Group Holdings Ltd ADR (NYSE:BABA) 2.7%. Baidu Inc (NASDAQ:BIDU) shares also rose 3.5%.
But China isn't abandoning its Zero Covid strategy, which uses monitoring, testing and isolation to contain the spread of the virus. It is rolling out mass testing that will allow officials in densely populated cities to test people frequently for access to public transportation and stores. The Chinese government plans to spend more than $50 billion this year on testing, medical facilities and other measures to combat Covid, Reuters reported.