Chinese Education Stocks See Brief Gains, iQiyi Rebounds After Short Report
A steady Tuesday followed early gains this week on capital markets as New York posted its highest daily fatalities from COVID-19, counting 731 on Monday.
Shares in iQiyi Inc. (Nasdaq: IQ) dropped 10% early on Tuesday after short-seller Muddy Waters and Wolfpack alleged fraud at the Chinese company. Its stock, however, rebounded in the afternoon, closing at $17.20 per share, up 3.22%.
Chinese education companies enjoyed an uptrend on Tuesday. Shares in China Online Education Group (NYSE: COE) jumped to $27 per share, up 9%. The Beijing-based company offers online English language education services in China.
Its rival, RISE Education Cayman Ltd (Nasdaq: REDU) rose 4% to $3.74 per share. The stock in New Oriental Education & Technology Group Inc. (NYSE: EDU) inclined 4% to $115.31 per share. The company offers language training and test preparation course in China.
TAL Education Group (NYSE: TAL) also gained 4% to $55.82 per share.
Puxin Ltd. (NYSE: NEW) gained 11% on Tuesday, closing at $4.08 per share. The company provides K-12 and study-abroad tutoring services in China.
However, after markets closed, the stocks in COE and EDU dropped 6% and 4%, respectively, while TAL shares plummeted over 20%.
China Customer Relations Centers, Inc. (Nasdaq: CCRC) gained 10% to $5.17 per share. The company offers business process outsourcing services for telecommunications companies in China since 2014.
Xinyuan Real Estate Co., Ltd. (NYSE: XIN) gained 10% to $2.58 per share. The Beijing-based company develops residential real estate properties for middle-income consumers.
The stock in NIO Inc. (NYSE: NIO) surged nearly 9% to $2.68 per American depositary share on news of strong deliveries for March. The Shanghai-based electric vehicle maker said that vehicle delivery in March reached 1,533, up 117% month-over-month. NIO's five-passenger SUV, the ES6, accounted for 96% of its deliveries at 1,479.
Shares in Pinduoduo Inc. (Nasdaq: PDD) gained 5.56% to $40.63 per share and Silicon Motion Technology Corporation (Nasdaq: SIMO) gained 5%.
ECMOHO Ltd. (Nasdaq: MOHO) saw its shares decline 16% to $4.61. The Shanghai-based company operates as an integrated solution provider in the non-medical health and wellness market.
Origin Agritech Ltd. (Nasdaq: SEED) also tumbled 16% in trading to $3.46 per share. The company operates agricultural biotechnology and an e-commerce platform in China.
K-12 education provider Hailiang Education Group Inc. (Nasdaq: HLG) lost 15% to $47.74 per share.
Lizhi Inc. (Nasdaq: LIZI) slipped 4% to $6.01 per share. Lizhi is one of China's biggest audio content apps.
Huya Inc. (NYSE: HUYA), a game live streaming platform, declined 7%.
Major benchmarks in the U.S. had a peaceful Tuesday. Blue-chip index the Dow Jones Industrial Average declined 0.12%, or 26 points, to 22,654, while the S&P 500 lost 0.16% to 2650. The tech-heavy Nasdaq dropped 0.33% to 7887.
The Hang Seng Index in Hong Kong soared 2.12% by 504 points to 24,253. The Shanghai Composite rose 2.05% to 2,821 and the Shenzhen Composite gained 3.15% to 10,429.
Crude oil prices dropped another 7% to $24 per barrel as of Tuesday afternoon.
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