Chinese stocks rallied as authorities were reportedly considering ways to rescue the long-slumping financial market. Hong Kong’s Hang Seng shares soared, while Chinese stocks traded in the United States also rose. alibaba (Baba), JD.com (JD), Nioh (NIO), XPeng (XPEV) and BYD (BYDDF) rose steadily to solidly.
X
Bloomberg reported, citing people familiar with the matter, that Chinese policymakers are planning to invest around 2 trillion yuan ($278 billion), mainly through Chinese state-owned enterprises, to buy domestic stocks via Hong Kong exchange links. ). It also plans to use approximately 300 billion yuan of domestic funds to invest in onshore stocks.
This comes after Premier Li Qiang urged “strong” measures to buoy the stock market.
Officials are considering other options and could announce at least some initiatives as early as this week.
Separately, China’s gaming regulator removed draft rules for the online gaming industry from its site.that’s good news tencent (TCEHY) and NetEase (NTES) specifically, but also allays concerns about broader enforcement.
Hong Kong’s Hang Seng Index, which is at a multi-year low, rose 2.6%.
Alibaba shares soared 7.4% in Tuesday morning trading, while Jingtocom rose 6.1%. Chinese EV maker Nio soared 13% and XPeng 11%. BYD stock rose 3%.
NTES stock rose 8%. Tencent rose 5.3%.
Follow Ed Carson’s thread @edcarson1971 and X/Twitter. @IBD_ECarson The latest information on the stock market, etc.
You may also like:
The best growth stocks to buy and watch
IBD Digital: Get access to IBD’s premium stock lists, tools and analysis now
Tesla vs. BYD: TSLA’s revenue plummets
These stocks will lead to a welcome change.Tesla extends slides on this news