On Friday, e-commerce giant Alibaba led a surge in Chinese tech stocks following optimistic first quarter earnings forecast.
Shares of Hong Kong-listed Alibaba rose 12%, warding off months of widespread Covid-19 lockdowns and supply chain disruptions in the world’s second-largest economy. The stock rose 11.8% to HK$90.70 at 2 p.m. Hong Kong time.
The rise followed a 14.8% rise in Alibaba’s New York-listed US certificates of deposit, which closed at $94.48 on Thursday.
The rise came despite Alibaba’s refusal to provide guidance for the current fiscal year because Covid-19 risks clouded its outlook, after reporting its weakest quarterly revenue growth since its IPO in 2014. .
Markets, however, focused on Alibaba’s quarterly revenue and profit amid a sharply weakening economy.
Analysts said results were more resilient than expected.
“As Alibaba’s large scale reflects the overall macro economy, we believe it is the primary beneficiary of a potential favorable policy rollout in terms of lockdown measures and consumer stimulus,” Daiwa analysts said. Capital in a note.
Alibaba helped Hong Kong’s Hang Seng Tech index rise nearly 4% as of 2 p.m. Friday, with all 30 companies listed on the benchmark posting gains.
Shares of Chinese search engine group Baidu soared 15.5% after the company announced an increase in sales. Shares of JD.com rose 5.8% after the e-commerce company reported an 18% increase in revenue.
- George Russell, with Reuters