Chinese stocks rose on Wednesday to their best day since 2008 as government officials signaled that the regulatory crackdown may soon be over.
Ali Baba (Baba), JD.com (Dinar), Baidu (BaiduOther Chinese stocks rebounded from multi-year lows. Stocks have been hit repeatedly for more than a year, due in large part to regulations, Covid-19 fears and macroeconomic concerns.
Chinese financial officials have said the regulatory crackdown on technology companies may soon be over. State media reported that it also plans to support the listing of shares abroad and stabilize the capital markets “as soon as possible”.
Alibaba shares rose 25.2% to 96.20 during afternoon trading in stock market today. JD.com stock jumped 32% to 60.70, while Baidu stock jumped 26% to 136.35.
Other Chinese stocks are on the way to move
Shares of biotech companies in China costume lab (ZLAB), Beijing (BGN) And the hitchmid (HCM) also rose in the news. These three were among five stocks listed by the Securities and Exchange Commission as not complying with audit rules. They are given until March 2024 to resolve the issue or face delisting.
In the afternoon, Zai Lab stock was up 28.1% near 37.20, leading to a 25.6% increase in BeiGene and Hutchmed’s 20.4% jump.
The positive comments from state officials came a day after Chinese stocks plunged to their lowest levels in 21 months. The widespread collapse of Chinese stocks followed a report that Russia had asked China for military assistance in its war on Ukraine. Traders worry that China’s aid to Russia could lead to a global backlash against Chinese companies, and even sanctions. Threats from Chinese companies to delist them from US stock exchanges have also been pressured.
The index records the largest gains
However, on Wednesday, the Hang Seng Tech Index, which is down nearly 70% from its February 2021 peak, posted its biggest daily gain of 22%. The Hang Seng Leading Index rose 9.1%, the largest one-day percentage increase since late 2008.
Before Wednesday’s rally, Alibaba’s stock in the past 12 months had lost 65% of its market value. One Jordanian dinar was down 47%, while Baidu’s stock was down 58%.
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Author Alison Gatlin contributed to this article.
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