Alibaba office building is seen in Nanjing, Jiangsu province, China, August 28, 2024.
CFOTO | Future Publishing | Getty Images
Chinese tech stocks, including beaten names like Alibaba, have rallied this week, hitting highs not seen in more than a year after China’s central bank announced stimulus measures. like the world’s second largest economy.
The Hang Seng Tech Index in Hong Kong, home to most of China’s major tech stocks, closed up nearly 6% at its highest level since early August 2023. The index rose 20% this week.
Alibaba.com closed above $100 per share for the first time since last August in the US on Thursday, after rising 10% during the session. On Friday, the company’s Hong Kong-listed shares hit their highest close since February 2023, rising nearly 5% to HK$102.50. Shares of the Hong Kong-based e-commerce giant rose about 18% this week.
Tencentowner of China’s largest messaging app WeChat and one of the world’s largest gaming companies, closed up nearly 2% at HK$437.80 per share. It was the company’s highest close in more than two and a half years and came after Tencent’s shares rose about 49% this year amid an economic slowdown. reviving its core gaming business.
Food delivery giant Meituan Meanwhile, it ended the session 8% higher at HK$164.60 a share, the company’s highest close since February last year.
The market recovery follows the People’s Bank of China this week announced cuts amount of cash the bank needs to have on hand. The central bank outlined plans to move forward Support the struggling real estate marketincludes an extension of the measures for two years and interest rate cuts on existing mortgages.
These measures were announced with the hope of boosting the Chinese economy. Before the cuts, investors were cautious about Chinese technology stocks such as Alibaba and Meituan, which are sensitive to the economy and consumers in China.
However, big-name investors do start attackinge a bullish tone on Chinese stocks. Billionaire founder of hedge fund David Tepper told CNBC on Thursday, after the US Federal Reserve cut interest rates this month, he bought more Chinese stocks, including names like Alibaba and Baidu.
Other names include JD.com And Baidu Login market share also increased this week.
Despite the latest rally, Chinese tech stocks remain significantly away from all-time highs reached in 2021.
– CNBC’s Evelyn Cheng contributed to this report.
