Caixin
Nov 02, 2021 01:53 PM
FINANCE

China Tech Stocks Jump on Fresh Sign of Easing Trade Tensions

Visitors use their smartphones as they ride on an escalator in Beijing on July 16. Photo: Bloomberg
Visitors use their smartphones as they ride on an escalator in Beijing on July 16. Photo: Bloomberg

(Bloomberg) — Chinese tech stocks rallied by the most in three weeks, tracking its U.S. peers overnight, on expectations that easing U.S.-Sino trade tensions would help the battered sector.

Hong Kong’s Hang Seng Tech Index jumped as much as 4%, poised to snap two days of losses. Bilibili Inc. and Hua Hong Semiconductor Ltd. led the gains, each rising at least 8.3%. The broader Hang Seng Index advanced 1.9%.

Investors are starting to wade back into the tech sector after a combination of overheated markets and Beijing’s regulatory crackdown sent the gauge tumbling over 40% from a February high.

A report that Treasury Secretary Janet Yellen said the U.S. expected China to meet its commitments under the phase one trade agreement and could look at eventually lower tariffs in a reciprocal way also improved sentiment.

“Tech shares, which are high beta and closely tied to U.S.-China relations, are therefore getting a boost,” said Daniel So, strategist at CMB International Securities. “Traders will be looking ahead to U.S. Fed meeting this week and China’s sixth party plenum for more clues.”

Contact editor Michael Bellart (michaelbellart@caixin.com)

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