Chinese Stocks Soar in U.S. Trading!
A big rally in Chinese internet stocks, led by Alibaba, is carrying over to the U.S.
Chinese stocks have rallied at the start of the year on bets that the nation’s reopening will eventually boost the economy and corporate profits despite initial disruptions.
Tweet on Chinese stock fluctuation
Stocks in Hong Kong rose for a second day, with Chinese technology and property stocks leading the way.
E-commerce giant Alibaba's shares jumped 8.8%#china #ecommerce pic.twitter.com/sQogC6zcMe— The_Journalbiz (@the_journalbiz) January 4, 2023
FactSet chart on China’s stock
Regulators approved a plan by Jack Ma’s Ant to raise 10.5 billion yuan ($1.5 billion) for its consumer unit, removing a hurdle before the fintech giant restarts its initial public offering shelved in 2020. The news pointed to warmer ties between Chinese authorities and the country’s biggest tech firms, as officials placed economic growth as a top priority.
Adding to the optimism is further potential policy support to the housing sector, a key weak spot in China’s Covid-hit economy. Beijing is planning to help shore up balance sheets of some developers it deemed as “systemically important,” according to a Bloomberg report.
The Chinese e-commerce company’s American depositary receipts rose 8% on Wednesday, after rising nearly 9% in Hong Kong. Regulators recently approved a $1.5 billion capital raise by a consumer-lending unit of Ant Group, an Alibaba affiliate.
The approval possibly signals a more friendly stance from the government on the industry, spurring bullish sentiment.
Other Chinese stocks listed in the U.S. joined in the rally as well. The Invesco Golden Dragon China ETF was recently up 6% on Wednesday morning.
