Full Truck's stock likely gained ground today as some investors believe Chinese tech stocks have bottomed out and are ready for a rebound. The stock was up by 11.3% at the end of the trading day.
Chinese tech stocks across several market sectors have been falling over the past several months as China's government has rolled out new restrictions for many technology companies.
The Chinese government first took aim at tech companies late last year as it began implementing stricter anti-monopoly practices. The government's effort left Alibaba, the country's largest e-commerce company, with a massive $2.8 billion fine.
Then, over the summer, the government said that it would crack down on after-school tutoring programs mainly run by tech companies. That has led to China's largest online education company, New Oriental Education & Technology, seeing its share price drop 77% over the past three months.
Full Truck's stock has plummeted along with other Chinese companies' share prices. But over the past few days, some investors have begun shifting their attention back to Chinese tech stocks, believing that the worst is over.
As a result, Full Truck's stock has spiked 29% over the past five days.
While some investors are wading back into the Chinese tech stock pool, it may be best to remain cautious. It's still unclear whether or not the Chinese government will implement new regulations, but even if they don't, there's still a lot of uncertainty about how Chinese companies will conduct business as the government increases pressure on the tech sector.