What's going on?

Pinduoduo reported strong quarterly earnings on Tuesday, as China�s �Amazon for farmfoods� proves that your greens really do help you grow up big and strong.

What does this mean?

Pinduoduo actually reported weaker-than-expected quarterly revenue, but its all-important profit came in ahead of forecasts. That�s probably not the only reason investors were so keen on its stock, either. See, China�s been cracking down on companies left and right, and it�s been causing all sorts of problems: the country�s stock market is down nearly 16% over the last six months. But this week investors seem to have spotted an opportunity to �buy the dip�, snatching up stocks of Chinese tech giants like Tencent, Alibaba, and JD.com on the cheap. And Pinduoduo was no different: investors pushed its share price up 15%.

Why should I care?

For markets: Cathie knows.

Investors might�ve chosen now to start piling into Chinese stocks because of Cathie Wood: the Ark Investment Management CEO � who shot to stardom when her company�s flagship fund climbed 150% last year � revealed on Monday that Ark had bought shares in JD.com. And given that the firm has otherwise been offloading Chinese tech stocks in the last few months, the swift turnaround might�ve convinced other investors to buy back in.

The bigger picture: The crackdown isn�t over till it�s over.

It can�t hurt that China�s recent announcements have started to put investors� minds at rest, with the government implying that it�s just looking to improve compliance standards, rather than hobble the tech sector altogether. That�s not to say it�s about to go easy on the industry: Didi confirmed this week that it had suspended plans to expand into Europe until the ride-hailing giant agrees with regulators how to handle passenger data. Throw in a crackdown on ride-hailing fees that could halve Didi�s profit margin, and China�s companies might not be out of the woods just yet.