(Bloomberg) — Alibaba Group Holding Ltd. led an advance in US-listed Chinese stocks on Wednesday, with Ant Group Co.’s approved fundraising plan boosting optimism that China’s regulatory clampdown on its internet sector is easing.
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Alibaba, which owns a stake in Ant, rallied as much as 7.5%, the most since November. Its e-commerce peers JD.com Inc. and Pinduoduo Inc. both traded up more than 6%. The Nasdaq Golden Dragon Index gained over 5%, rising on a second day to its highest level in about four months.
Chinese stocks have rallied at the start of the year on bets that the nation’s reopening will eventually boost the economy and corporate profits despite initial disruptions.
Regulators approved a plan by Jack Ma’s Ant to raise 10.5 billion yuan ($1.5 billion) for its consumer unit, removing a hurdle before the fintech giant restarts its initial public offering shelved in 2020. The news pointed to warmer ties between Chinese authorities and the country’s biggest tech firms, as officials placed economic growth as a top priority.
Adding to the optimism is further potential policy support to the housing sector, a key weak spot in China’s Covid-hit economy. Beijing is planning to help shore up balance sheets of some developers it deemed as “systemically important,” according to a Bloomberg report. Authorities also resumed approvals for private equity funds to raise money for residential property developments.
With Wednesday’s advance, the Hang Seng China Enterprises Index, a gauge tracking major Hong Kong-listed Chinese stocks, closed at its highest level since July. A pickup in mobility in some major cities has given hope that Covid caseload may have peaked, after the highly infectious virus pushed the country’s economic activity to the slowest pace since February 2020.
–With assistance from Yiqin Shen.
(Updates chart, prices and adds Nasdaq Golden Dragon Index movement in second paragraph)
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