JD.com, Alibaba Stocks Rise Ahead of Key China Meeting. It's a Big Deal for Apple, Too. -- Barrons.com

By Callum Keown

JD.com, Alibaba, and other Chinese stocks rose Friday ahead of a key meeting next week in which Beijing could unveil a stimulus package to boost the country's sluggish economy.

JD.com's Hong Kong shares climbed 1.7%, and are now up 40.5% this year, as investors anticipated a stimulus plan in the days ahead. Alibaba rose 0.5%, while tech conglomerate Tencent jumped 3.6%. Both JD.com and Alibaba's American depositary receipts (ADRs) edged higher ahead of the U.S. open.

It isn't just Chinese companies that will be eagerly awaiting an announcement during the weeklong meeting of China's Standing Committee.

Estée Lauder stock tumbled 21% Thursday after the luxury-cosmetics company removed guidance for the year, citing uncertainty over China's recovery. Apple's sales in Greater China declined in the September quarter and the country remains a weak spot for the tech giant.

" Estée Lauder isn't suffering alone. LVMH, Burberry and Apple are also on the list of companies finding life harder in this part of Asia," AJ Bell analyst Dan Coatsworth said. "They will be hoping that Beijing's economic stimulus measures are powerful enough to drive a market recovery soon."

UBS economist Tao Wang said the outcome of the U.S. election could have a say on the size of China's fiscal stimulus. She said in a scenario in which Donald Trump wins and raises tariffs on imports from China and the rest of the world "we would expect China to respond with bigger fiscal stimulus, more rate cuts, more support to the property market, and measures to support exporters."

With news on the stimulus package expected in the days ahead and the U.S. election just days away, it's going to be a big week for Chinese stocks too.

Write to Callum Keown at callum.keown@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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November 01, 2024 09:28 ET (13:28 GMT)

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