October 19, 2021

Excellent Pix

Unlimited Technology

China Tech Stock Gauge Rebounds After Falling to Record Low

(Bloomberg) — Chinese technology stocks rebounded Thursday from a record low, following their American peers higher amid signs of renewed interest in one of China’s biggest tech names. 

Hong Kong’s Hang Seng Tech Index jumped as much as 4.3%, led by NetEase (NASDAQ:) Inc. and Kuaishou Technology, which were both up at least 7.6%. Tech shares helped propel the broader , which gained at much as 2.4%. 

Sentiment was also lifted by plans for U.S. President Joe Biden to meet virtually with Chinese President Xi Jinping, and a media report about a large investor increasing its stake Alibaba (NYSE:) Group Holding Ltd. 

“This level of volatility in the markets right now means there’s a lot of noise in price action,” said Kyle Rodda, a market analyst at IG Markets Ltd., adding that the U.S. rebound overnight has given scope for Hong Kong tech to bounce. 

“Zooming out, things still look a little ugly for the Hang Seng, even for the day to day rallies we are sometimes seeing,” he said. 

Thursday’s rally comes after the tech gauge notched five consecutive days of declines amid concerns a worsening energy crunch could stoke inflation and push up bond yields.

Markets on the mainland are set to reopen on Friday following the Golden Week holiday.

©2021 Bloomberg L.P.

Source News