On August 28, 2024, the Alibaba office building in Nanjing, Jiangsu Province, China.
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Chinese technology stocks, including hard-hit companies such as Alibaba, rose this week to hit their highest level in more than a year after China's central bank announced measures to stimulate the world's second-largest economy.
Hong Kong's Hang Seng Technology Index, which includes most of China's largest technology stocks, closed nearly 6% higher, hitting its highest level since early August 2023.
Alibaba On Thursday, U.S. stocks closed above $100 a share for the first time since August last year, rising 10% intraday. On Friday, the company's Hong Kong-listed shares hit their highest closing price since February 2023, rising nearly 5% to HK$102.50. The e-commerce giant's Hong Kong shares are up about 18% this week.
TencentShares of WeChat, the owner of China's largest messaging app and one of the world's largest gaming companies, closed up nearly 2% at HK$437.80 per share. It was the company's highest closing price in two-and-a-half years, after Tencent shares rose about 49% this year on a recovery in its core gaming business.
food delivery giant Meituan At the same time, the company closed up 8% at HK$164.60 per share, its highest closing level since February last year.
Markets rose after the People's Bank of China announced this week it would cut the amount of cash banks have on hand. The central bank outlined plans to further support the struggling housing market, including extending measures for two years and cutting existing mortgage rates.
The measures were announced in the hope of boosting China's economy. Before the rate cut, investors were wary of Chinese technology stocks sensitive to the country's economy and consumers, such as Alibaba and Meituan-Dianping.
However, big-name investors are already starting to pouncee Bullish tone for Chinese stocks. Billionaire hedge fund founder David Tepper told CNBC on Thursday that he bought more Chinese stocks, including companies such as Alibaba and Baidu, after the Federal Reserve cut interest rates this month.
Other names include Jingdong and Baidu Shares are also up this week.
Despite recent gains, Chinese tech stocks remain well off the all-time highs set in 2021.
– CNBC's Evelyn Cheng contributed to this report.