Chinese tech stocks rally as Tencent leads recovery after five-week selloff
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Chinese tech stocks rally as Tencent leads recovery after five-week selloff
Chinese technology stocks rebounded from nearly a 10-month low in Hong Kong on Monday as the market’s dive into bear territory has turned the oversold sector into a bargain buy.
The Hang Seng Tech Index gained 4.5%, the biggest jump since July, after a slump of almost 11% recorded last week. The benchmark had fallen for five weeks in row, marking the largest drop since January 2019.
The index that tracks China’s biggest technology stocks lost over 40% since its peak in February amid Beijing’s extended crackdown on the sector. The listed firms reportedly lost nearly $1.5 trillion in value due to the selloff.
Meanwhile, the Shanghai Composite Index rose 1.5%, its biggest rally since early August and the tech-heavy ChiNext index surged 3.2%.
JD Health International and Bilibili surged nearly 10% in morning trading, while WuXi Biologics and Alibaba Health Information Technology soared by 7.5% and 6.1% respectively. CSPC Pharmaceutical Group gained 3.6%.
Meanwhile, the tech sector’s frontrunner Tencent Holdings increased by 4.4%, the most in nearly two weeks.
Alibaba Group Holding stock is still struggling, having plunged to another record low before paring some losses, while video streaming major Kuaishou Technology increased slightly ahead of its earnings report coming this week.
