China Tech Stocks Jump as Xiaomi, Alibaba Buybacks Lift Sentiment

The Hang Seng China Enterprises Index climbed 26% from a low this month, while the benchmark CSI 300 Index rebounded 7%

(Bloomberg) — Chinese tech stocks extended a rally into a second day Wednesday as share buybacks by Xiaomi Corp. and Alibaba Group Holding Ltd. spurred hopes that other companies may follow suit.

The Hang Seng Tech Index ended 2.1% higher. Xiaomi gained 4.1% and Bilibili Inc. 10%, among outperforming names. The gauge has climbed nearly 40% from a low last week but remains down more than 50% from a February 2021 peak.

Tencent Holdings Ltd., JD.com Inc., and Meituan are among enterprises in the sector that are sitting on huge piles of cash. Some of these companies have been known to launch buybacks after disclosing earnings. Meituan is set to report Friday, while Tencent will issue earnings Wednesday after the close of trading.