and other Chinese tech stocks rose by double-digit percentages, leading a broader market rally, as investor hopes the government will do more to support the sector and the broader economy.
Friday’s rise helped Chinese stocks recover some of their recent losses, while the yuan also rebounded some ground against the dollar after Selling at a sharp discount in recent sessions.
According to Xinhua, the Politburo, China’s top policy-making body, on Friday said the government should come up with effective policies to support the economy, stabilize consumption and investment in order to support growth, according to Xinhua News Agency. The calls came at a meeting on Friday chaired by President Xi Jinping, Xinhua said.
Policymakers say they will step up support and try to hit their growth target this year, even as the Covid-19 outbreak and the Russia-Ukraine war intensify the challenges facing the economy. China’s economy has to face. Many economists and analysts say China’s GDP growth target is 5.5% will be difficult to achievewith many major cities closed due to China’s zero-Covid policy.
From Hong Kong
The index is up 4%, while the Hang Seng Technology Index is up 10%, with shares of tech companies like Alibaba,
Tencent Holdings Ltd.
both increased by more than 10%. In mainland China, the CSI 300 and Shanghai Composite both gained about 2.4%.
The moves limit a period of turmoil for the Chinese market, with domestic stocks earlier this week suffering their worst one-day sell-off in more than two years, while the yuan fell to lows. closest to the end of 2020. Despite Friday’s rally, the CSI 300 ended the month 4.9% lower, while the Hang Seng ended April 4.1% underwater.
Louis Lau, chief investment officer at Brandes Investment Partners in San Diego, said: “So far, the level of stimulus has been measured, but I believe there is still plenty of room to support growth if planners policymaking ready. “There is more room for Chinese stocks to recover if investors regain confidence and real economic fundamentals improve.”
Friday’s market moves appear to have been stronger than the reaction to other recent joint communiques, as guidance came from China’s top leadership, Mr. Lau added.
In the money market, the renminbi appreciates in both the domestic market and the foreign market, which is more freely traded. The offshore yuan rose nearly 0.6 percent to 6.6123 yuan per dollar in late afternoon Hong Kong. However, it is still markedly weaker than at the end of March, when it settled at 6.3546 per dollar.
Policymakers also called on government agencies to support industries and small businesses affected by the pandemic and help stabilize consumer prices, Xinhua said. They also called for action to ensure that domestic logistics, key supply chains and the operations of key companies in China’s battle against Covid-19 go smoothly.
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