US-listed Chinese stocks surged on Friday with technology stocks leading gains after Beijing promised more stimulus to rescue an economy hampered by the extended Covid-19 lockdown and to support the development of technology platform companies.
E-commerce giant Alibaba Group Holding Ltd. ended the day up 6.8%, having previously jumped as much as 13.9%. Meanwhile, JD.com rose 6.7% and Pinduoduo Inc. up 13.5%.
China's Nasdaq Golden Dragon Index, up more than 4.5% to its highest in 10 days, trimmed its monthly loss to around 5%.
The rally in the group followed a 10% gain in the Hang Seng Tech Index, its best one-day performance since Beijing pledged to stabilize financial markets on March 16.
However, the rally was not enough to stop China's Nasdaq Golden Dragon Index from dropping for a sixth straight month, its longest span since at least 2001.
Citing Bloomberg (30/4), the Chinese Communist Party, Politburo pledged to meet economic targets and support the healthy growth of internet platform companies.
Officials pledged to accelerate the implementation of supporting measures, including tax cuts and cost reductions, while sticking to the Zero Covid policy.
"The tone in the Politburo's "strategic intent" is very pro-growth compared to the previous year, which was more pro-justice in sharing prosperity," said Jason Hsu, chief investment officer at Rayliant Global Advisors Ltd.
The comments come amid a South China Morning Post report that China is planning a symposium with 'Big Tech' after the Labor Day holiday.
Henry Guo, an analyst at M Science argues that technology companies should indeed help further the economic recovery. Considering the difficult macro environment due to the Covid-19 pandemic. "It seems the Chinese government has become supportive." he said.
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