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Bilibili (NASDAQ:BILI) shares surged more than 23% after the video game company reported third-quarter results that topped estimates, leading a broader rally in Chinese tech stocks after the country announced some changes to its COVID-19 policies.
For the period ending September 30, Bilibili (BILI) said it lost an adjusted 63 cents per share on $814.5M in revenue, compared to expectations of a loss of 65 cents per share and $789.33M in revenue.
The company also said that its daily active users reached 90.3M in the quarter, up 25% year-over-year, while monthly active users also rose 25% to 332.6M.
Looking ahead, Bilibili (BILI) said it expects net revenues to be between RMB6B and RMB6.2B.
On Tuesday, Chinese officials said the country would boost its vaccination levels for its elderly citizens, as the country looks to deal with the Omicron variant and increasing unrest from its citizens as they deal with lockdowns in several cities.
According to the New York Times, 90% of China’s total population is fully vaccinated, but the number drops to 65.8% for those 80 and older, with just 40% of that group having received a booster.
Several cities, including Zhengzhou, where Foxconn’s main iPhone plant is based, as well as Shanghai and Beijing, have seen citizens protesting against the country’s “zero-Covid” strategy, which has disrupted the global supply chain and economy and resulted in some citizens calling for the resignation of Chinese Premier Xi Jinping.
Chinese officials are slated to speak at a press conference at 3 p.m. local time to discuss measures the country is taking to dealing with the pandemic.
Speculation about the yet-to-be announced measures spurred overnight gains in Chinese equities, with the moves continuing in New York trading. Alibaba (BABA), JD.com (JD), Tencent (OTCPK:TCEHY), Baidu (NASDAQ:BIDU) and several others rose sharply on Tuesday, led by an 8.6% move in JD.com.
Baidu (BIDU) rose nearly 6% after the company said it had plans to build the world’s largest autonomous ride-hailing service area in 2023.
The KraneShares CSI China Internet ETF (KWEB) climbed more than 6% in late morning trading.
Separately on Tuesday, Disney (DIS) said that its Shanghai Disneyland theme park would shut down again “temporarily” over new COVID-19 controls.
