Why did Pinduoduo stock surge today? China is easing up Big Tech
Zhong Zhi/Getty Images Entertainment

Pindudo (NASDAQ:PDD) shares surged on Friday after a Chinese state-run news outlet reported that the Chinese government may end its regulatory crackdown on internet companies in an effort to help the suffering economy.
The South China Morning Post, citing two sources briefed on the situation, reported that the government will have a symposium with the country's largest tech firms and tell them that they will stop the regulatory push. The symposium has reportedly been set for Labour Day holiday, which starts on April 30 and runs until May 4.
Pinduduo (PDD) shares gained nearly 14% to $43.24 in late trading on Friday. 
Separately, Bloomberg reported on Friday that regulators from Beijing are discussing with their American counterparts how to allow on-site audit of Chinese companies listed in New York.
The China Securities Regulatory Commission recently confirmed plans to revise confidentiality rules in regards to overseas listings in a move that could help Chinese companies avoid being delisted in the U.S.
Earlier this month, the Central Cyberspace Administration of China said it would start a two-month "special action" to curb illegal content on streaming and short video sites amid a broader crackdown on the country's live streaming industry.
In March, investment firm UBS upgraded Pinduoduo (PDD) to buy, noting the potential for margin expansion, while revenue and earnings growth are likely to drive a "re-rating" of the stock.