2024-01-23 16:41:21
Chinese concept stocks listed on the New York Stock Exchange rebounded on Tuesday (23rd) after experiencing a slump at the beginning of the year. Reports that the Chinese government launched a bailout package for the plummeting domestic stock market boosted market sentiment.
NasdaqChina’s Golden Dragon Index – a measure of China’s American depositary receipts (ADRs) – rose 5.8% on Tuesday after hitting its lowest level since November 2021 in the previous session, well above the tech-heavy index.NasdaqThe index rose 0.3%.
Earlier on the same day, media reported that Beijing’s policymakers were seeking to spend about 2 trillion yuan, citing people familiar with the matter.RMB ($278.53 billion) to stabilize the battered stock market.
Before the deadline, JD.com (JD-US)(9618-HK), NetEase (NTES-US)(9999-HK), Pinduoduo(PDD-US)’s U.S. stock ADRs rose between 6% and 7.5% on Tuesday.
It is worth noting that Alibaba (BABA-US)(9988-HK) shares rose 6.79% after reports that co-founder Jack Ma and Chairman Joe Tsai bought millions of dollars worth of stock in the Chinese e-commerce giant in the fourth quarter of last year.
China’s domestic stock market rebounded from multi-year lows on Tuesday on hopes of a rescue plan and Beijing’s government pledges to stabilize market confidence. Charalampos Pissouros, an analyst at Cyprus foreign exchange broker XM, said: “Investors are cheering the stimulus plan…(However) today’s news may not be enough to reverse the decline of Chinese stocks.”
Blue-chip CSI300 index remains near 5-year low, Hong KongHang Seng IndexIt is hovering near a 14-month low as China’s economic recovery from the epidemic disappoints and the government’s stimulus measures fail to prop up the battered real estate industry.
On the other hand, the iShares MSCI China ETF rose nearly 4% on Tuesday. The $4.96 billion fund has seen outflows of about $300 million so far this month, extending losses from record annual capital outflows of $848 million in 2023, LSEG data showed.
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