Tencent, Alibaba jump over 20% as govt assures stability and support

Hong Kong stocks jumped 9 per cent on Wednesday to mark their best day since 2008, after China’s top policymaker assured markets of stability and support and helped put a floor under sectors hurt by a regulatory crackdown.

Vice Premier Liu He said Beijing would roll out support for the Chinese economy as well as be cautious with measures for capital markets.

The comments came a day after China stocks slumped to 21-month lows and mainland firms listed in Hong Kong plumbed 2008 lows. Liu’s assurances helped the Hang Seng index claw back all the ground lost on Tuesday and more. The HSI surged more than 9 per cent to above the 20,000-point mark.

The Hang Seng Tech Index logged its biggest daily gain of 22 per cent, recovering a good deal of the ground it had ceded since March 10 as regulatory fears piled up. 

Among Hong Kong index heavyweights, Meituan jumped 32.1 per cent, while Tencent Holdings and Alibaba Group soared 23 per cent and 27 per cent, respectively, logging their biggest daily gains. Other stocks caught in China’s regulatory crosshairs, such as education, also rallied, with New Oriental Education & Technology Group rising 37 per cent.

The blue-chip CSI300 index gained the most since July 2020, rising 4.3 per cent, while the Shanghai Composite Index added 3.5 per cent.