Alibaba and Other Tech Stocks Rally In Hong Kong As Hang Seng Extends Rebound

Shares of Alibaba Group Holding Limited BABA, Baidu Inc. BIDU, JD.Com Inc. JD,  Tencent Holdings Inc. TCEHY, Li Auto Inc. LI and Xpeng Inc. XPEV rose in Hong Kong on Wednesday.

What’s Moving: Shares of the Chinese tech companies traded higher in a range between 2% and 6% in Hong Kong, following similar gains by their U.S. peers overnight.

See Also: How To Buy Alibaba (BABA) Stock

Hong Kong’s benchmark Hang Seng Index opened higher on Wednesday and was up 0.3% at the time of writing. The index closed 1.0% higher on Monday. 

Why Is It Moving? The Hang Seng Index rose as stocks extended their rebound from a 21-month low on Monday.

Investors remain optimistic about more policy easing by Beijing after the People’s Bank of China (PBOC) reduced the one-year loan prime rate (LPR) on Monday.

Cash-strapped Chinese developer RiseSun Real Estate Development Co. said that a majority of its creditors support its proposal to exchange two-dollar bonds maturing next year for notes with longer durations, Bloomberg reported.

Meanwhile, data analytics and consulting company GlobalData said in a research note that it expects more Chinese tech, media and telecom (TMT) companies to continue to launch secondary listings in China or Hong Kong as they face a more hostile environment in the United States.

Chinese artificial intelligence startup SenseTime, which was included on a U.S. blacklist, has excluded U.S. investors from owning shares in the company after it relaunched its IPO in Hong Kong this week, GlobalData analyst Swati Verma noted.

Shares of Chinese companies closed sharply higher in U.S. trading on Tuesday after the major averages in the U.S. ended notably higher as fears about the Omicron variant of the coronavirus eased.

Alibaba’s shares closed 6.9% higher, while Nio Inc.’s NIO shares ended higher by 7.1%.

Bitcoin BTC/USD and other major cryptocurrencies also moved higher along with U.S. stocks and traded higher Tuesday evening amid an improved appetite for risk assets.

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