The U.S.-listed shares of China-based companies enjoyed a broad rally Friday, fueled by a big rally in shares of PDD Holdings Inc. after the mobile marketplace company’s first-quarter results beat by wide margins.
The Invesco Golden Dragon China exchange-traded fund
PGJ,
Shares of PDD
PDD,
The company reported before the opening bell net income that more than doubled, to RMB8.10 billion ($1.18 billion), or RMB5.55 per American depositary share, from RMB2.60 billion, or RMB1.84 in the year-ago period. Excluding nonrecurring items, adjusted earnings per ADS of RMB6.92 was well above the FactSet consensus of RMB4.46..
Revenue grew 58.1% to RMB37.64 billion ($5.48 billion), to beat the FactSet consensus of RMB32.18 billion. Revenue from online marketing services increased 50% to RMB27.24 billion and transaction services revenue jumped 86% to RMB5.59 billion.
“We see clear recovery trends,” said Co-Chief Executive Officer Jiazhen Zhao in a post-earnings conference call with clients, according to an AlphaSense translation of the transcript. “Online retail continues to pick up. Users continue to show a higher willingness to shop.”
These trends lay a “solid foundation” for steady growth in consumption for the whole year,” Jiazhen Zhao said.
Among other more-active PGJ components, shares of electric vehicle maker Nio Inc.
NIO,
The PGJ’s second-biggest gainer was cryptocurrency miner Bit Digital Inc.’s stock
BTBT,
Meanwhile, the PGJ’s biggest decliner was Canaan Inc.’s stock
CAN,
The PGJ has lost 7.4% year to date, while the S&P 500 index
SPX,