Benzinga | Oct 11, 2021 09:41AM EDT

Why Pinduoduo Shares Are Trading Higher Today

Pinduoduo Inc (NASDAQ:PDD) is trading higher Monday morning after China fined food delivery giant Meituan $534 million for antitrust violations, which increased investor optimism that China's regulation on their large tech companies is easing.

China technology stocks listed in Hong Kong rallied following the announcement as the $534 million fine was not as large as expected.

Jefferies analysts said the antitrust fine has removed an "overhang" over Meituan.

"We believe the SAMR decision addresses market concerns and Meituan has been communicating with authorities and upgrading its business operations," the Jefferies analysts said in a note Sunday.

Pinduoduo provides a platform for buyers with value-for-money merchandise and fun and interactive shopping experiences.

PDD Price Action: Pinduoduo has traded as high as $212.59 and as low as $73.01 over a 52-week period.

The stock was up 2% at $98.20 at the time of publication.