All articles tagged with #chinese tech stocks
Chinese tech stocks surged to a near four-year high driven by AI-related buying and a regulatory ban on Nvidia chips, which boosted prospects for domestic chipmakers like SMIC and Hua Hong Semiconductor, amid a broader market optimism and strategic moves by companies like Huawei to challenge Nvidia.
Shares of Chinese tech giants Alibaba, Baidu, and JD.com fell due to disappointing Q2 economic growth data from China, which reported only 4.7% growth, below expectations. The lackluster performance in consumer spending and retail sales, coupled with a focus on industrial production and exports, has raised concerns about the companies' upcoming earnings and overall market sentiment. Despite recent interest rate cuts and housing sector measures, more stimulus may be needed to revive China's consumer economy.
Chinese tech stocks, including Baidu, Nio, and XPeng, surged amid rumors of Chinese government intervention to support the stock market. President Xi Jinping's administration is reportedly planning to address short-selling and increase state-controlled investment in Chinese companies. While this news led to a short-term stock price increase, concerns remain about the long-term economic fundamentals in China. Baidu stands out as a solidly profitable and undervalued option compared to Nio and XPeng, which continue to face rising losses despite increasing sales.
Alibaba and other Chinese tech stocks are experiencing a decline as concerns over an economic slowdown in China grow, despite hopes for stimulus measures.
Despite strong Q1 earnings reports from Baidu and iQiyi, Chinese tech stocks including Alibaba, JD.com, and Tencent fell in pre-market trading. Baidu's revenue was $4.54B, with an 8% YoY increase from Baidu Core to $3.35B, while iQiyi's revenue was $1.2B, up 9.1% YoY. However, shares of iQiyi tumbled around 8%. Other Chinese tech stocks, including Pinduoduo, Bilibilii, and NetEase, also fell in early trading, and the KraneShares CSI China Internet ETF dipped more than 2%.
Alibaba's Hong Kong-listed shares rose by 13.7% after the company announced it will split into six business groups, leading to a 2.03% gain in Hong Kong's Hang Seng index and a 2.4% climb in the Hang Seng Tech index. Meanwhile, Asia-Pacific markets were mostly higher, with the Nikkei 225 rising 1.33% and the Topix rising 1.46% in Japan, and Australia's S&P/ASX 200 rising 0.23%. In the US, all three major indexes fell, with the tech-heavy Nasdaq Composite losing 0.45%. Additionally, regulators in the US spoke in favor of tougher rules for regional banks, while the consumer confidence index rose more than expected in March.