Alibaba, other Chinese tech stocks rise as Beijing provides market support

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Alibaba, other Chinese tech stocks rise as Beijing provides market support


Flag of China waving in the wind.

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Ali Baba (NYSE: BABA) (NASDAQ: JD) and several other Chinese tech stocks skyrocketed Wednesday after state media claimed the Chinese the government would stabilize its markets and support economic growth.

According to the Xinhua news agency, Beijing will take various measures favorable to the market, including on issues related to monetary policy and foreign initial public offerings, in order to revive the country ‘

“Regarding the macroeconomic operation, we must implement the decisions and provisions of the CCP Central Committee, effectively reinvigorate the economy in the first quarter, proactively respond to monetary policy and maintain moderate growth of new loans,” he said. a translated version of the Xinhua report.

The report added that the Chinese government “continues to support various types of companies to be listed overseas,” noting that it will work with US regulators, including the Securities and Exchange Commission on the matter.

He also said mainland and Hong Kong regulators should “strengthen communication and cooperation” regarding Hong Kong’s financial market stability.

Morgan Stanley analyst Laura Wang said the Chinese government’s latest comments are likely to boost investor confidence.

“We take these statements positively and see that the Hang Seng index is back significantly above our downside target of 19,500, with gains for A shares as well,” Wang wrote in an investor note. “The path back to our base case, now clearer than before with the above developments, will probably remain long.”

Chinese stocks rose in reaction to the report, with Alibaba (BABA) up by more than 26%, while (JD) jumped 30%.

Alibaba (BABA) and JD (JD) had a lot of company, like Pinduoduo (NASDAQ: PDD) jumped over 45%Baidu (NASDAQ: BIDU) pink almost 26% and leader of DiDi Global ride sharing (NYSE: DIDI) up by over 46%.

Shares of other companies, such as Tencent (OTCPK: TCEHY)Kingsoft Cloud (NASDAQ: KC)Huya (NYSE: HUYA)Dou Yu (NASDAQ: DOYU)Dada Nexus (NASDAQ: DADA)Baozun (NASDAQ: BZUN)Bibili (NASDAQ: BILI)KE Holdings (NYSE: BEKE)Joy (NASDAQ: AA)NetEase (NASDAQ: NTES)Zihu (NYSE: ZH) Group (NASDAQ: TCOM)iQIYI (NASDAQ: IQ)Hello Group (NASDAQ: MOMO)Vipshop (NYSE: VIP) and Dingdong (NYSE: DDL) also exploded Wednesday early.

Earlier this week, Alibaba (BABA), Baidu (BIDU) other Chinese companies plummeted after analysts at JP Morgan reduced their valuations on many of the country’s well-known technology leaders to the equivalent of selling.

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