Alibaba leads tech stock rally. Photo: VCG
Nothing like some sweet tweets from U.S. President Donald Trump to light a fire under your stock.
That seems to be the story for overseas-listed Chinese tech stocks, which posted healthy gains Monday in New York and Hong Kong. The rally came a day after U.S. President Donald Trump rolled back a March 1 deadline for imposing new tariffs in his trade war with China , citing “substantial progress” in talks.
Second-tier tech stocks were some of the biggest gainers, with movie streaming specialist Bilibili rising 4% and live broadcaster Huya up an even higher 4.7%. Some giants like e-commerce juggernaut Alibaba, the nation’s biggest internet company, also did well as Alibaba posted a 3.6% gain.
On the other side of the Pacific, even beleaguered smartphone maker Xiaomi managed to partake of the fun, posting a 2.7% gain in Hong Kong. But apart from Alibaba, China’s two other largest internet companies failed to benefit, with gaming giant Tencent falling a slight 0.06% and search leader Baidu down 1.3%. Baidu’s shares have sagged since the company reported late last week that its profit tumbled by half in last year’s fourth quarter.
The rally continues a surge for the tech group since the start of the year, reversing a miserable 2018 that most Chinese tech companies would probably rather forget as China’s domestic markets slid into bear territory on concerns about a cooling economy. Alibaba shares are a case in point, losing about 30% of their value in 2018 before rallying by about a third so far this year.