The Chinese stock market experienced a dramatic upswing last week, fueled by the People’s Bank of China’s (PBOC) announcement of a significant stimulus package. The PBOC revealed plans to cut banks’ reserve requirement ratio (RRR) by 50 basis points, effectively injecting more liquidity into the economy. This move, coupled with targeted support for the struggling property market, ignited a rally among US-listed Chinese companies.
Among the top performers, JD.com, Inc. (JD) witnessed a remarkable 39.75% surge in its share price. This positive development followed the PBOC’s announcement of the RRR cut, indicating the potential for increased consumer spending and economic growth.
KE Holdings Inc (BEKE) stock also soared, jumping 39.18%, after reports emerged that China would issue up to $284 billion of sovereign debt as part of the stimulus. This move signals a commitment to stimulating economic activity and boosting confidence in the market.
PDD Holdings Inc. (PDD) shares experienced a similar surge, climbing 35.52%, likely influenced by the news of the sovereign debt issuance.
Liberty Broadband Corporation’s (LBRDA) stock increased by 31.74% following the announcement of a counterproposal to the special committee of the board of directors of Charter Communications, Inc. (CHTR).
Yum China Holdings, Inc. (YUMC) shares rose by 27.64%, benefiting from the overall positive sentiment surrounding China’s stimulus efforts.
H World Group Limited (HTHT) stock saw a 26.43% increase, riding the wave of optimism in the Chinese stock market.
Trip.com Group Ltd (TCOM) stock gained 26.02% in the last week, also influenced by the positive sentiment surrounding the Chinese market.
Nio Inc (NIO) joined the rally, with its stock gaining 23.48% last week. This increase aligns with the government’s stimulus plans, which are expected to bolster the electric vehicle industry.
Wynn Resorts, Limited (WYNN) stock surged 22.47% after Morgan Stanley upgraded its rating from Equal-Weight to Overweight and raised the price target from $97 to $104. This upgrade reflects confidence in the company’s future performance.
Baidu Inc (BIDU) gained 21.95%, joining the broader rally in Chinese stocks driven by the government’s stimulus efforts.
Alibaba Group Holding Ltd (BABA) and Li Auto Inc (LI) also contributed to the Chinese stock rally, with each gaining over 20% last week. These strong performances highlight the positive sentiment surrounding the Chinese market, fueled by the government’s proactive measures to stimulate economic growth and support key industries.
