Alibaba and Other China Stocks Surge. Beware of a Dead Cat Bounce.

Alibaba and other Chinese names surged on Tuesday, bouncing back after a brutal selloff in recent days as investors seized on more signs that the government will support the stock market. Beware: this could be a dead cat bounce. Alibaba stock rose 4.4% in U.S. premarket trading on Tuesday, with shares in e-commerce peers JD.com 5.7% higher and Temu owner PDD up 4.4%.