US-listed China stocks bounce off lows on hopes of Beijing support
Reuters
Published Jan 23, 2024 11:07AM ET
By Medha Singh
(Reuters) - New York-listed shares of Chinese companies bounced back on Tuesday after a dour start to the year, after a report of a rescue package for the slumping domestic stock market buoyed sentiment.
The Nasdaq Golden Dragon China Index - a gauge of Chinese American depositary receipts (ADRs) - jumped 5.8% after hitting its lowest level since Nov. 2021 in the previous session and much higher than the tech-heavy Nasdaq Composite's 0.3% rise.
Policymakers in Beijing are looking to mobilize about 2 trillion yuan ($278.53 billion) in an effort to stabilize a bruised stock market, Bloomberg News reported on Tuesday citing people familiar with the matter.
ADRs of heavyweights JD (NASDAQ:JD).com, Baidu (NASDAQ:BIDU), NetEase (NASDAQ:NTES) and PDD HOldings rose between 6% and 7.5%.
Chinese domestic stocks rose from multi-year lows earlier in the day on hopes of the rescue package and Beijing's pledge to stabilize market confidence.
"Investors are cheering the stimulus plan... (however) today's news may not be enough to turn the tide for Chinese equities," said Charalampos Pissouros, analyst at Cyprus-based forex brokerage XM.
The bluechip CSI300 Index is still near five-year lows. Hong Kong's Hang Seng is hovering near 14-month lows following the country's disappointing post-pandemic economic recovery and underwhelming stimulus measures to support the battered property sector.
The iShares MSCI China ETF added nearly 4% on Tuesday. The $4.96 billion fund has seen about $300 million in outflows so far this month, extending losses from a record annual drop in capital flows of $848 million in 2023, according to LSEG data.
Alibaba (NYSE:BABA) jumped 7.6% after a report co-founder Jack Ma and Chairman Joe Tsai bought millions worth of shares in the Chinese e-commerce giant in the fourth quarter.
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Written By: Reuters
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