China and Hong Kong flags flutter as a display shows the Hang Seng Index outside the Trade Square complex, where the Hong Kong Stock Exchange is located, on January 21, 2021 in Hong Kong, China Country.
Zhang Wei | China News Service via Getty Images
Shares of Chinese internet giants in Hong Kong jumped on Wednesday, continuing a rally that began about a week ago.
On Wednesday afternoon in Hong Kong, shares of Tencent up 2.68%, Alibaba up 7.08% and Meituan increased by 4.44%.
SChinese smartphone manufacturer rabbit Xiaomi also saw its shares rise 6.06%, following Tuesday’s announcement of a plan to buy back shares on the open market “over time” for a maximum total price of HK$10 billion ( $1.28 billion). Xiaomi also announced that its fourth-quarter revenue increased by 21.4% year-on-year.
The Hang Seng Tech Index is up 3.23%, although it is still 15% lower than at the start of the year.
Stocks in Hong Kong have mostly gone higher since their release state media reports last Wednesday signal in favor of Chinese stocks.
In particular, the article said regulators should “complete as soon as possible” the crackdown on internet platform companies.
Notice of Shared acquisitions of technology companies like Alibaba and Xiaomi in recent days are also likely to arouse investor sentiment.
JPMorgan Asset Management’s Tai Hui said the Chinese government’s regulatory reforms, especially for internet companies, have affected Chinese stocks.
“Governments will have to prove predictable and transparent when it comes to real-life changes, and this can take a long time,” said Tai, the company’s head of Asia market strategy. “. “Financial performance in the upcoming quarters will help investors determine how these rule changes impact their long-term earnings potential.”
