Technology stocks

Alibaba soars 12% as Chinese tech stocks rise

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

READ MORE:

Alibaba and Ant Group leave Paytm E-commerce – Mint

Alibaba-backed brokerage on brink of bond default – Mingtiandi

Chinese tech giants Alibaba and Tencent set to cut jobs

george russell

George Russell is a Hong Kong-based freelance writer and editor who has lived in Asia since 1996. His work has appeared in the Financial Times, Wall Street Journal, Bloomberg, New York Post, Variety, Forbes, and South China Morning Post. . .