Shares of JD.com (JD -2.12%) were moving higher today alongside several Chinese tech stocks as markets bounced back after yesterday's sell-off.
As of 11:21 a.m. ET on Tuesday, JD stock was up 6.4%.
Monday's sell-off was caused by spiking omicron cases and the big setback in President Biden's Build Back Better bill when Sen. Joe Manchin, a West Virginia Democrat, refused to support it.
There was no company-specific news out on JD.com, but JD Fresh, its fresh-produce division, yesterday announced plans to double the Sunkist citrus fruits it imports over the next three years. The announcement, while not big enough to move the needle, is a reminder that the company is expanding in several different directions, including fresh produce, as it has become the biggest supermarket business in China. JD became an official importer of Sunkist in China and has since seen 60% compound annual growth, showing high demand in the category.
Elsewhere, Nike reported disappointing sales in China due to factory closures and other COVID-related restrictions, a negative data point for those looking at consumer sales in the country. Still, as an e-commerce company, JD might be less affected by COVID-related issues.
It was one of several Chinese tech stocks to jump today, along with Alibaba Group Holding and Pinduoduo, showing that the gains were likely driven by a risk-on movement in the market and the perception by some that Chinese stocks have been oversold.
While 2021 has generally been a disastrous year for Chinese stocks, JD has held up better than most. The company hasn't received the level of scrutiny that peers like Alibaba or Tencent Holdings have, and has continued to put up steady growth, while building out new businesses like logistics and its e-commerce marketplace.
The stock will continue to be sensitive to news about China, especially regarding the regulatory crackdown and U.S. listings of Chinese stocks. But for investors who still want exposure to the world's fastest-growing major economy, JD.com seems like a good bet.