What happened

Shares of Chinese e-commerce company Pinduoduo (NASDAQ:PDD), rose 26.9% in October, according to data from S&P Global Market Intelligence. Though the company didn't report earnings during the month, its stock appeared to continue the positive momentum from its late-August Q2 earnings release, with additional positive data points coming from a third-party site that tracks mobile activity.

In addition, easing U.S.-China tensions helped all Chinese stocks, which had been knocked down due to trade war fears early in the month.

A young woman holds a delivery box in one hand and speaks on her cellphone.

Image source: Getty Images.

So what

Toward the end of September, rumors circled that the Trump administration was considering limiting or barring U.S. investment in Chinese companies. Pinduoduo shares, listed on Nasdaq, sold off on these late-September rumors. But in October, the ban wound up not happening, and more-friendly tones between the two countries boosted hopes for a limited "phase one" trade deal. Shares of many Chinese companies bounced back after the calendar flipped to October.

Then late in the month, research firm Sensor Tower said that Pinduoduo was the top-ranked shopping app on the Apple (NASDAQ:AAPL) store, surpassing many large competitors. Trade war concerns may have counterintuitively helped Pinduoduo, which offers discounted items to groups of people who buy together in bulk through its platform.

Now what

The positive news on trade tensions and positive third-party data continued the strong run for Pinduoduo, which has been on a tear ever since its Q2 earnings report showed impressive 169% revenue growth and operating losses that narrowed by nearly 80%. The company will look to continue its strong growth when it reports third-quarter earnings on Nov. 20. Growth investors everywhere should mark their calendars.