Chinese ADRs continued to jump in overnight trading as stimulus rally carried on. Alibaba, PDD Holdings, JD.com, and Bilibili rose 4%; NIO rose 15%; Li Auto and XPeng rose 6%; iQiyi rose 7%; KE Holdings rose 18%.
China took steps to lower borrowing costs on as much as $5.3 trillion in mortgages for millions of families in its latest attempt to shore up the troubled property sector.
Homeowners will be able to renegotiate terms with their current lenders effective Nov. 1, the People’s Bank of China said in a statement late Sunday. Those who chose fixed mortgage rates can also renegotiate new loans based on the latest loan prime rate, a reference rate for mortgage loans, according to the statement.
Meanwhile, Three of China’s largest cities eased rules for homebuyers, following through on the central government’s latest efforts to prop up the embattled property sector.
Trading hub Guangzhou became the first tier-1 city to remove all restrictions, saying it will stop reviewing homebuyer eligibility and no longer limit the number of homes owned, according to a statement late Sunday. Both Shanghai and Shenzhen said they will allow more people to purchase residences in suburban areas, as well as allow others to buy more homes.
Rocket Lab USA Inc.’s shares jumped another 7.3% in overnight trading after soaring 12.5% on Friday, boosted by KeyBanc Capital Markets’ price-target hike for the space-launch company.
In a note released Thursday, KeyBanc Capital Markets said it had hosted a nondeal roadshow with Rocket Lab, including the company’s chief financial officer, Adam Spice. “We came away with increased visibility/confidence in [Rocket Lab’s] ability to scale its business, and we continue to believe it is positioning itself to be an industry leader in both launch services and satellite manufacturing/design,” KeyBanc Capital Markets analyst Michael Leshock wrote in the note.
KeyBanc Capital Markets maintained its overweight rating for Rocket Lab and increased its price target to $11 from $8. “We continue to see upside optionality over the long run upon execution,” said Leshock.
