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Chinese Tech Stock is bouncing off the market

HONG KONG – Alibaba Group Holding Ltd.

BABA 2.93%

and shares of other Chinese technology rose two percentage points, leading to a broader market rally, in the hope that investors would do more to help the government and the wider economy.

Friday’s rise helped China’s stock recover some of its recent losses, and the yuan also pushed against the dollar after a significant sell-off in recent sessions.

Politburo, China’s main policy-making body, said on Friday that the government should expand its policies to support the economy, stabilize consumption and help effectively invest growth, according to the State Xinhua News Agency. The calls were made at a meeting chaired by President Xi Jinping on Friday, Xinhua said.

Politicians said they would step up support and strive for this year’s growth target, even as Covid-19 outbreaks and the war in Russia and Ukraine have exacerbated the challenges facing the Chinese economy. Many economists and analysts have said that China’s goal will be difficult to achieve 5.5% growth in gross domestic product, as many major cities are blocked due to China’s zero-Covid policy.

The Hang Seng Index in Hong Kong gained 4%, while the Hang Seng Tech Index rose 10% with shares of technology companies such as Alibaba, Tencent Holdings. Ltd.

JD.com Inc.

and Meituan 3690 15.51%

all rising by more than 10%. In mainland China, the CSI 300 and Shanghai Composite both rose by about 2.4%.

The moves limit the turbulent period for Chinese markets, while this week’s dry stocks suffered their worst day-to-day sales in more than two years, while the yuan fell to its final high at the end of 2020. Despite Friday’s rebound, the CSI 300 ended. the month was down 4.9%, while Hang Seng was down 4.1% in April.

“So far the stimulus has been measured, but I think there is room for more growth to support growth, if political leaders want it,” said Louis Lauk, investment director at Brandes Investment Partners in San Diego. “Chinese equities have a high chance of recovery if investors regain confidence and real economic bases improve.”

Friday’s market movements seemed to be stronger than the reaction of recent press releases, as the leadership came from China’s top leadership, Mr Four added.

In currency markets, the yuan rose both in land markets and in freer offshore markets. Sea yuan rose nearly 0.6% to $ 6.6123 per dollar by the end of the Hong Kong afternoon. However, it remains significantly weaker than at the end of March, when it settled at $ 6.3546 per dollar.

Policy makers have also called on government agencies to help pandemic-affected industries and small businesses and help stabilize consumer prices, Xinhu said. They have called for measures to ensure that domestic logistics, major supply chains and the operations of companies that are key to China’s fight against Covid-19 will work properly.

Write Rebecca Feng at rebecca.feng@wsj.com and Dave Sebastian at dave.sebastian@wsj.com

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Chinese Tech Stock is bouncing off the market

Source link Chinese Tech Stock is bouncing off the market

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