US-listed China stocks bounce off lows on hopes of Beijing support

NetEase

23/01/2024 16:02

By Medha Singh
       Jan 23 (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  .HXC  - 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  .IXIC 
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.com  JD.O , Baidu  BIDU.O , NetEase
 NTES.O  and PDD HOldings  PDD.O  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  .CSI300  is still near five-year
lows. Hong Kong's Hang Seng  .HSI  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  MCHI.O  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  BABA.N  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.
    

 (Reporting by Medha Singh in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly
Twitter: @medhasinghs;))