U.S.-listed China tech stocks are rallying again Wednesday, helped by strong optimism that government stimulus will boost the Chinese economy. Alibaba stock, JD.com and Baidu are each up in heavy trading volume.
American depositary receipts for China's largest tech firms jumped last week, after the country's central bank announced plans to cut interest rates, among other measures. Economists described the plans as China's most forceful stimulus efforts since it ended its zero Covid policy in late 2022. Optimism about the plan has carried into a new week for previously beaten-down China tech stocks.
Shares of e-commerce and cloud computing giant Alibaba stock were last up a fraction, after rallying more than 1% on the stock market today. Shares are up 7% this week after a 21% jump last week. Meanwhile, shares of Alibaba's e-commerce rival JD.com are up more than 3% at 44.35. U.S..-listed JD stock rocketed 40% last week and is up 12% so far this week.
Alibaba Stock Near Two-Year High
On Sunday, the Chinese government said that it would allow homebuyers to refinance their mortgages in a step it hopes will boost the country's property sector slowdown. The news helped extend the rally for Chinese stocks into a new week.
Alibaba stock is now trading at levels not seen since January 2023. JD stock is at its highest point since March 2023. The stocks are still well below record highs seen in late 2020 and early 2021, respectively. Both Alibaba and JD have struggled amid slowing consumer spending and increased competition from discount retailers such as PDD Holdings-owned Pinduoduo
Also up Wednesday was Chinese internet search giant Baidu. Baidu stock gained more than 2% at 113.23, its highest point since May. Shares gained 22% last week and are ahead 7% so far this week.
PDD Stock Eyes Buy Point
Meanwhile, PDD stock is up more than 4% at 152.35. Shares of the Pinduoduo and Temu parent company sank 28% following PDD's second quarter earnings report in late August. The recent rally has made up for that loss and has PDD stock approaching a 52-week high from May.
PDD stock has formed a consolidation pattern with a buy point of 164.69, according to MarketSurge pattern recognition.
Elsewhere, shares of WeChat parent company Tencent are up 5% at 60.04 in recent action. Tencent stock is listed in Hong Kong and trades over-the-counter in the U.S. Shares gained 13% last week and are up 7% this week.
