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March 16, 2022, 5:28 a.m. EDT

Alibaba and JD.com soar as China pledges to support markets

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By Steve Goldstein

Chinese- and Hong Kong-listed stocks soared on Wednesday after China’s government pledged to support beleaguered markets.

The Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.18% surged 9% as state-run Xinhua News Agency said the government would take a number of market-friendly steps .

The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.66% rose 3.5%.

China’s financial stability and development committee called for monetary policy to support the economy, and that authorities should prudently introduce policies that have a contractionary impact.

The Chinese government also is working with U.S. authorities to support listings overseas, as the Securities and Exchange Commission last week identified Chinese companies that could be delisted over the issue of auditor access.

JD.com /zigman2/quotes/218934055/delayed HK:9618 -3.39% /zigman2/quotes/205122565/composite JD -2.17% jumped 36%, Alibaba /zigman2/quotes/215112034/delayed HK:9988 -3.03% /zigman2/quotes/201948298/composite BABA -2.37% rallied 27% and NetEase /zigman2/quotes/218787563/delayed HK:9999 -1.84% /zigman2/quotes/201683625/composite NTES -1.77% surged 23% in Hong Kong trade.

Other Hong Kong tech stars also jumped, including Meituan /zigman2/quotes/205161725/delayed HK:3690 -2.79% and Tencent Holdings /zigman2/quotes/204605823/delayed HK:700 -2.83% .

The committee also said it would keep Hong Kong’s financial markets stable while enhancing regulatory communications and coordination with Hong Kong regulators.

“Having disappointed markets earlier in the week by not cutting interest rates, China’s state economic policy apparatus is taking significant coordinated steps to support risk sentiment. These include State Council support for overseas listings, engaging with the U.S. on ADRs, and perhaps most importantly, suggesting that regulation of its big tech firms will end soon. There are also promises to step-up support for the real estate sector,” said Stephen Innes, managing partner at SPI Asset Management.

Even with Wednesday’s surge, the Hong Kong index is down 14% this year, compared to the 11% drop for the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.72% .

The remarks didn’t address another factor that’s been weighing on Chinese stocks, the possibility of sanctions from the U.S. if the country provides arms to Russia.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
17,933.27
-214.68 -1.18%
Volume: 1.78M
Sept. 23, 2022 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,088.37
-20.54 -0.66%
Volume: 24.31B
Sept. 23, 2022 3:00p
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/zigman2/quotes/218934055/delayed
HK : Hong Kong
$ 205.00
-7.20 -3.39%
Volume: 4.96M
Sept. 23, 2022 4:08p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$632.26 billion
Rev. per Employee
$3.14M
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/zigman2/quotes/205122565/composite
US : U.S.: Nasdaq
$ 52.31
-1.16 -2.17%
Volume: 5.63M
Sept. 23, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$80.54 billion
Rev. per Employee
$402,689
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/zigman2/quotes/215112034/delayed
HK : Hong Kong
$ 78.40
-2.45 -3.03%
Volume: 45.21M
Sept. 23, 2022 4:08p
P/E Ratio
44.20
Dividend Yield
N/A
Market Cap
$1644.06 billion
Rev. per Employee
$4.05M
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/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 78.80
-1.91 -2.37%
Volume: 20.49M
Sept. 23, 2022 4:00p
P/E Ratio
43.42
Dividend Yield
N/A
Market Cap
$209.44 billion
Rev. per Employee
$518,515
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/zigman2/quotes/218787563/delayed
HK : Hong Kong
$ 122.50
-2.30 -1.84%
Volume: 4.81M
Sept. 23, 2022 4:08p
P/E Ratio
18.14
Dividend Yield
1.68%
Market Cap
$402.12 billion
Rev. per Employee
$3.52M
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/zigman2/quotes/201683625/composite
US : U.S.: Nasdaq
$ 77.55
-1.40 -1.77%
Volume: 1.42M
Sept. 23, 2022 4:00p
P/E Ratio
17.93
Dividend Yield
1.68%
Market Cap
$51.23 billion
Rev. per Employee
$450,820
loading...
/zigman2/quotes/205161725/delayed
HK : Hong Kong
$ 160.30
-4.60 -2.79%
Volume: 12.68M
Sept. 23, 2022 4:08p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$992.06 billion
Rev. per Employee
$2.36M
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
$ 275.00
-8.00 -2.83%
Volume: 19.67M
Sept. 23, 2022 4:08p
P/E Ratio
12.47
Dividend Yield
0.58%
Market Cap
$2622.17 billion
Rev. per Employee
$5.96M
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,693.23
-64.76 -1.72%
Volume: 2.22B
Sept. 23, 2022 5:04p
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