Ali Baba
,
and other Chinese tech stocks were rising early Friday as investors digested a fresh stimulus boost and weighed up the prospect of further measures.
The People’s Bank of China offered commercial lenders a net 800 billion yuan ($113 billion) in one-year loans Friday—a record cash injection into the banking system through its one-year policy.
In a bid to boost the country’s struggling property market, Beijing and Shanghai implemented new measures Thursday including cutting down-payment ratios to buy homes and extending mortgage repayment deadlines.
There could be more, as state media reported this week that China will step up policy adjustments to support an economic recovery in 2024.
Disappointing retail sales and home prices data Friday left the door open for more stimulus. Retail sales climbed 10.1% year over year in November, an acceleration from the 7.6% jump in October but below economists’ expectations for a 12.5% rise. Chinese house prices fell for a fifth consecutive month, 0.2% year over year in November, while prices for new homes in 70 major Chinese cities fell 0.4% month over month.
Advertisement – Scroll to Continue
However, there was some positive news. Industrial production rose 6.6%, beating the economists’ consensus of a 5.6% jump in November.
But the combination of stimulus measures, and increasing hopes for a further boost into 2024, helped lift stocks Friday.
shares rose 3.7% in Hong Kong trading, while the e-commerce giant’s American depositary receipts (ADRs) were 4.1% up in early trading Friday.
stock jumped 7% in Hong Kong and its ADRs pointed 6.6% higher.
shares were 2.8% up in U.S. trading, and Temu parent
rose 1.9%.
Write to Callum Keown at callum.keown@barrons.com