U.S. retail investors hear the news and buy Chinese stocks

The Chinese government is implementing far-reaching reforms in various fields such as education and technology. While rectifying Chinese companies, it has also made the Wall Street on the other side of the world go crazy, sending Chinese stocks on a roller coaster. U.S. stocks also fell into pessimism on Tuesday over Beijing's regulatory, with the S&P 500 slightly lower and the Dow Jones Industrial Average down. But persistent short-term speculators took the opportunity to buy on dips.

Just days after retail investors helped U.S. stocks stop bleeding, they threw nearly $1.7 billion into the market on Tuesday. It looks like the Robinhood-based army is pouring their money into exchange-traded funds (ETFs), including tech stocks. The world's largest ETF, the $383 billion SPDR S&P 500 ETF Trust (SPY), saw its biggest inflows since March on Tuesday, adding $3.55 billion. The $182 billion Invesco QQQ Trust Series 1 (QQQ) recorded $474 million, bringing the four-day total to more than $3.2 billion.

Vanda's research shows that retail investors bought tumbled Chinese concept stocks, including technology stocks. The data provider, which tracks order flow and trading platform traffic, revealed that NIO, Xiaopeng and Alibaba are the top three Chinese stocks with the most orders. Chinese U.S.-listed stocks rebounded on Wednesday after people familiar with the matter said the China Securities Regulatory Commission held a virtual meeting with major investment banks in an effort to calm market sentiment. The Nasdaq Golden Dragon China index soared 9.3%, its biggest gain in nearly 13 years. NIO rose 6.3 percent, Alibaba rose 5.3 percent and Xiaopeng surged 7.6 percent.