Chinese stocks rebounded as authorities reportedly mull rescue efforts for its long-ailing financial markets. Hong Kong’s Hang Seng surged, while Chinese stocks that trade in the U.S., such as Alibaba (BABA), JD.com (JD), Nio (NIO), XPeng (XPEV) and BYD (BYDDF), up .
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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.
Separately, China’s gaming regulator removed from its site proposed draft rules for the online gaming industry. That’s good news for Tencent (TCEHY) and NetEase (NTES) specifically, but also eases fears of a broader crackdown.
Hong Kong’s Hang Seng index, which has hit multiyear lows, jumped 2.6%. Alibaba stock rose 1.4% in premarket trading with JD.com up 3%. Chinese EV maker Nio and XPeng popped 4%. NTES stock gained 3.9%
BYD stock, which trades over the counter in the U.S., rose 3.2% in Hong Kong. Tencent, another OTC stock in the U.S., gained 3.7%.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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