(Bloomberg) Alibaba Group shares rose more than 12% on Tuesday, a record rally since the Hong Kong listing, as investors piled into Chinese tech stocks on liquidity boost by the central bank.
The surge in Alibaba boosted the benchmark Hang Seng Index to a gain of 2.7%, while the Hang Seng Tech Index surged 4.2%.
The share jump is a boost for Alibaba as it was down by 58% on Monday from its February high on continued crackdowns of the tech sector by Beijing, weak consumer spending, and company-specific disappointing earnings.
The rebound also happened after Alibaba’s shares dropped to the most oversold level in Hong Kong, making it one of the least expensive among its peers in the Hang Seng Tech Index.
Bloomberg analyst Catherine Lim says China’s central bank move to cut the reserve ratio boosting the economy with 1.2 trillion yuan, or $188 billion, will continue to benefit e-commerce firms.
Chinese investors still lack access to Alibaba shares in Hong Kong as current rules exclude dual-listed equities from being included between the mainland and city.
9988: HKG is up +12.24%.
