Chinese Stocks in US Rally, Erasing Most of Record Selloff

  • Golden Dragon China Index posts best two-day gain since April
  • Alibaba, JD jump on Beijing policy support; retail flows rise

Traders work on the floor of the New York Stock Exchange. 

Photographer: Michael Nagle/Bloomberg
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Chinese stocks in the US are extending their rally after a record selloff on Monday, as Beijing’s pledge to support its financial markets lifted investor confidence and retail traders bought the dip.

The Nasdaq Golden Dragon China Index rose 7.2% on Wednesday, bringing its two-day gain to 12%, the most since April. The index has erased most of its losses from Monday, when it sank 14%. Among the top performers, Alibaba Group Holding Ltd., JD.com Inc. and Pinduoduo Inc. jumped more than 8%, while Lufax Holding Ltd. rallied 13%.