Chinese technology stocks rallied for a second day as bargain hunters returned, emboldened by Tencent Holdings’s share buyback and strong results from JD.com, which drew Cathie Wood back into the market.
The Hang Seng Tech Index advanced more than 7%, adding to a 2% gain on Monday, after a five-week rout that took the gauge to the lowest level since its inception last year. Heavyweights Tencent and Alibaba Group Holding climbed 8.8% and 9.5%, respectively. In New York, The Nasdaq Golden Dragon China Index jumped 5.2% at the open.
While there’s no indication that the nation’s increased oversight on tech and other fast growing businesses will ease, the absence of new initiatives in recent days opened the door to investors who see longer-term value in China stocks. Some are also taking a cue from technical charts that show the index plunged into oversold territory last week.
