NEW YORK (TheStreet) -- Shares of Vipshop Holdings (VIPS) - Get Report are higher by 3.82% to $12.63 on Wednesday afternoon, as some U.S. traded China-based stocks get a boost from the rise in China's market today.
Vipshop is a holding company that operates as an online discount retailer for brands in China.
The Shanghai Composite Index jumped by 2.8% passing the 3,000 level at the close, Bloomberg reports. The yuan was up by 0.46% to 6.4767 per dollar.
China stocks jumped the most in four weeks after Bank of Communications Co. and China Petroleum & Chemical Corp. (SNP) reported better than expected earnings, and after the Fed said yesterday that it will be more cautious regarding future interest rate hikes.
China's outlook for earnings growth is getting better as the country's economy begins to show signs of stabilizing, Bloomberg added. China's industrial profits jumped by 4.8% in the first two months of 2016 and it is believed Friday's manufacturing data will show an improvement as well.
"A delay in U.S. rate hikes will also give China's central bank more leeway to loosen its monetary policy and spur hopes for further cuts in rates and banks' reserve requirements," Zhang Gang, a strategist at Central China Securities told Bloomberg.
Separately, TheStreet Ratings has set a "hold" rating and a score of C+ on Vipshop Holdings stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, robust revenue growth and notable return on equity. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
You can view the full analysis from the report here: VIPS