Baidu and four other U.S. listed China stocks made aggressive moves early Tuesday, with JD.com and PDD Holdings leading the Nasdaq 100, fueled by the Hang Seng Index jumping more than 3% to its highest level in three months.
The Hang Seng Index jumped 3.1 per cent to 17,093.50 at close Tuesday, its highest since Nov. 28, 2023. China's markets have begun to take on a bullish tint, with a number of key indexes rebound 20% or more from recent lows.
The Hang Seng is up more than 14% from its November low, but the Hang Seng Tech index has gained almost 22%.
Companies starting to announce stock buybacks and an unexpected rise in China's consumer prices in February appear to have boosted China stocks. U.S. listed China stocks tend to track with the Hang Seng Index. Over the same period, the China growth-stock tracking ChiNext Index has gained nearly 23%.
Chinese tech giant Baidu advanced 1.7% to 102.99 early during Tuesday's market action. Baidu is still down year to date, but trading 42% above its November low.
Meanwhile, China-based EV startups XPeng and Nio gained 2.2% and 0.7%, respectively. Xpeng is also sharply lower for the year, but up 23% since Jan. 31.
Chinese e-commerce stocks PDD Holdings and JD.com led the Nasdaq 100 early Tuesday. PDD jumped 3.3% to 115.55 while JD surged 4.5% to 27.24.
On Monday, Jefferies upped its rating on PDD stock to buy from a neutral hold rating, increasing its price target to 157, from 117. Meanwhile, JD.com last week posted fourth-quarter earnings and sales ahead of expectations. The Beijing-based company also announced plans to buy back an additional $3 billion in stock.
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