Alibaba Sees Rebound, Hong Kong Shares Jump 5%: What You Need To Know

Alibaba Group Holding Ltd’s BABA shares traded 5% higher at press time in Hong Kong.

What’s Moving: Shares of the Jack Ma-led e-commerce to data center conglomerate traded 5% higher at HKD 159.70 )($20.50) in Hong Kong.

Alibaba shares hit an intraday high of HKD 160.70 ($20.63) in Tuesday’s trading (local time).

On Monday in New York, Alibaba shares closed 1.96% higher at $161.06 in the regular session and gained another almost 1% in the after-hours trading to $162.75.

See Also: How To Buy Alibaba (BABA) Stock

Why Is It Moving? Alibaba shares are showing a sign of rebound after plummeting last week on news that the Chinese authorities planned further regulatory actions on large tech firms. 

On Friday, the day Alibaba’s shares hit a support level of $155.50, a large institution purchased $611.71 million worth of common shares of the e-commerce behemoth.

As per Benzinga’s Melanie Schaffer, the trader chose to buy common shares instead of options to avoid time decay if the shares moved sideways or lower.

See Also: You Ask, We Analyze: What's Next For Alibaba Stock?

At the time, the freefall was also noticed in shares of JD.com, Inc JD, Tencent Holdings TCEHY, and Baidu, Inc BIDU among other Chinese names.

On Monday, JD.com, Tencent, and Baidu all closed 3.32%, 1.93%, and 3.71% higher respectively.
On the same day, Alibaba-rival JD.com saw its second-quarter earnings per share touch $0.45, which beat the Street estimate of $0.41, which saw positive investor reaction.

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