Shares of Chinese food delivery giant Meituan surged nearly 17% on Wednesday, propelled by a broad rally in Chinese stocks listed in Hong Kong. The sharp gains were driven by renewed optimism surrounding China's growth outlook and the recent economic stimulus measures unveiled by authorities.
Last week, Beijing unveiled a range of stimulus policies aimed at bolstering the economy, including interest rate cuts, freeing up cash for banks, and providing liquidity support for stocks. Four major cities also eased home-buying curbs, and the central bank moved to lower mortgage rates. These measures have boosted investor confidence and fueled a buying spree in Chinese equities, which had been undervalued after a three-year decline.
The attractive valuations of Chinese stocks, trading at around half the level of the S&P 500, have lured hedge funds and institutional investors to pile into the market at a record pace. In a sign of surging investor interest, billionaire investor David Tepper and the world's biggest money manager, BlackRock Inc., have increased their exposure to Chinese shares, while several other investment firms have entered into bullish positions on China-related exchange-traded funds and large-cap stocks.
Comments