Chinese ADRs jumped again this week as stimuluspolicies continue. Among Chinese companies with a market value greater than $10 billion, Alibaba jumped 7%, PDD Holdings surged 14%, and JD.com soared 18%.
Beijing’s stimulus package has unleashed a wave of buying since last week, with the pace of gains the fastest since November 2008. Strategists at HSBC Holdings Plc and BlackRock Inc. are among Wall Street heavyweights turning bullish on the once beaten-down market. China’s equity markets will also keep rising after business in the mainland resumes following the Golden Week break, analysts predicted.
The focus is now turning to how consumers have reacted in the Golden Week holiday, and how the government follows up with more fiscal support, Tai Hui, APAC chief market strategist at JPMorgan Asset Management, said in a Bloomberg TV interview. “That would be a key factor in sustaining the rally that we have seen so far.”
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