JD.com, Alibaba propel stocks in Hong Kong as China’s backing for markets spurs confidence while Fed begins rate lift-off

Name: China’s delicate position on Russia-Ukraine crisis and its opposition to Western sanctions
Uploaded: 2022-03-17T02:22:14.000Z
Duration: 2 min 54 s
Description: China’s delicate position on Russia-Ukraine crisis and its opposition to Western sanctions

Recovery momentum strengthened as investors snapped up stocks at multi-decade low in valuations after this week’s rout

The Federal Reserve raised its target rate for the first time since 2018 to contain inflation, while signalling hikes in each of the next six policy meetings this year

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China is giving the stock market a verbal boost after JPMorgan Chase described part of it as ‘uninvestable.’ Photo: AFP

Cheryl Heng

Published: 10:22am, 17 Mar 2022Updated: 5:02pm, 17 Mar 2022

Hong Kong stocks advanced as investors regained confidence after China vowed to support the market with coordinated measures. The Federal Reserve raised its benchmark interest rate for the first time since 2018 to contain inflation, underscoring optimism in the economic outlook.

The Hang Seng Index climbed 7 per cent to 21,501.23 at the close of Thursday trading, adding to the biggest rebound since October 2008 a day earlier. The Tech Index surged 7.8 per cent, following a record 22 per cent jump on Wednesday, while the Shanghai Composite Index gained 1.4 per cent.

JD.com and Alibaba Group Holding led gainers, surging by at least 12 per cent to HK$254.40 and HK$102 respectively. Meituan soared 12.3 per cent to HK$157.20 while Tencent gained 6.3 per cent to HK$390. Developer Country Garden jumped more than 28 per cent to HK$5.56.

Today’s advance added to Wednesday’s massive rebound that recouped US$364 billion in the Hong Kong market. It came after a State Council committee vowed to ensure market stability after valuations slumped to multi-decade lows, while Jefferies analysts said concerns “are in the price.”

Investors dumped stocks over the past month amid a resurgence in Omicron cases, while the Ukraine invasion and delisting pressures on US-listed Chinese stocks also sapped global risk appetite.

In a veiled reference to the trillion-dollar tech crackdown, the committee chaired by vice-premier Liu He also said “any policy that has a significant impact on the capital market should be coordinated with the financial authorities in advance to maintain stable and consistent expectations,” Xinhua News Agency reported.

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China’s delicate position on Russia-Ukraine crisis and its opposition to Western sanctions