Chinese stocks rebounded as authorities reportedly mull rescue efforts for its long-ailing financial markets. Hong Kong’s Hang Seng surged with stocks that trade in the U.S., such as Alibaba (BABA), JD.com (JD), Nio (NIO), XPeng (XPEV) and BYD (BYDDF), up strongly.
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Chinese policymakers are looking to tap some 2 trillion yuan ($278 billion), mostly via Chinese state-owned enterprises, to buy shares onshore via the Hong Kong exchange link, Bloomberg report, citing sources. They also are planning to use some 300 billion yuan in local funds to invest in onshore shares.
That comes after Premier Li Qiang urged “forceful” steps to buoy stock markets.
Authorities, also mulling other options, could announce at least some initiatives as soon as this week.
Hong Kong’s Hang Seng index, which has multiyear lower, jumped nearly 3%. Alibaba stock rose nearly 5% in Hong Kong, with JD.com up 6%. Chinese EV makers Nio leapt over 7% and XPeng 9%. BYD stock popped almost 4%.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
