Chinese Technology Stocks Jump as Cheap Valuations Lure Buyers

A public screen displays the Shenzhen Stock Exchange and the Hang Seng Index figures in Shanghai on Aug. 18, 2021. Photo: Bloomberg

(Bloomberg) — A gauge of Chinese technology shares rallied by the most in over a week as investors took advantage of attractive valuations in the battered sector and the prospect of looser monetary policy conditions.

The Hang Seng Tech Index rose as much as 3.8% on Wednesday, headed for its highest level since Dec. 16. The move, which tracked a rally overnight for U.S.-listed Chinese peers, was led by JD.com Inc. and Meituan, which advanced at least 7.7% each.