Stock Prices for Alibaba and JD.com Experience a Rally
As per the latest reports, the stock prices for several Chinese tech companies have experienced a rise. This is because the investors are now trusting the China-based tech companies more than they did in the past. Now that the investors have gained more regulatory transparency in regards to tech companies, they have started investing more in them.
As a result, the stock prices for the companies have experienced a rise and they are gaining momentum since Monday, August 23, 2021. Although the stock prices for the Chinese tech companies started showing a positive trend, they showed real performance on Tuesday, August 24, 2021.
This has caused some of the major names to make a comeback that had faced some of the worst times due to the Chinese scrutiny. The stock prices of almost every Chinese tech company based enlisted on the US Stock Exchanges had faced a downtrend in the past couple of months.
The downtrend is directly accredited to the regulatory scrutiny launched by the regulatory authorities against the tech companies in China. The major concern in regards to such companies raised by the regulators was the protection of customer data. They raised questions in regards to data protection and wanted to know if the companies were fully adhering to policies or not.
Some of the major tech giants that have demonstrated a rise in their share prices include Baidu, Alibaba, and JD.com. The reports show that on Tuesday’s trading market, the stock prices for Baidu experienced a 3.9% rise. Whereas, the stock prices for Alibaba and JD.com experienced a 4.9% and 8.2% rise on Tuesday trading.
Similar to the US Stock Exchange markets, the tech companies also experienced a rise in the stock prices on the Hong Kong Stock Exchange markets. The data shows that the Hang Seng Tech Index showed a significant rise in the overall performance of the index.
The Hang Seng Tech Index is known for having the largest tech companies enlisted in the stock exchange markets for Hong Kong. At present, the particular index is known for having a total of 30 companies that are enlisted in the Hong Kong markets.
According to data, the overall performance of the particular index experienced a rise of 7%, which even crossed the expectations for the particular index. The data shows that the rise expectation in the performance of the particular index was just 2.5%.
On the other hand, the tech companies enlisted on the Chinese Stock Exchange markets also experienced a significant rise in their share prices. On Tuesday, August 24, the stock price of Alibaba experienced a 9.5% rise, while Meituan experienced a 13.5% rise. In the end, Tencent shares experienced an 8.8% increase on Tuesday trading.