Shares of PDD (NASDAQ:PDD) climbed sharply in U.S. premarket trading on Wednesday after news that the company had been hit with a relatively small regulatory penalty in China.
According to a report by Chinese state news agency Xinhua, PDD was fined 100,000 yuan ($14,359) by a district-level taxation bureau in Shanghai for failing to submit required tax information. Investors appeared relieved by the modest size of the fine, having feared a more substantial sanction.
Following the announcement, PDD’s shares were up about 6.6%, reflecting market perception that the regulatory outcome was less punitive than expected.