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HONG KONG— Alibaba Group Holding Ltd. BABA 2.93% and other Chinese technology stocks jumped by double-digit percentages, leading a broader market rally, on investor hopes that the government would do more to support the sector and the broader economy.
The surge on Friday helped Chinese shares recoup some of their recent losses, while the yuan also clawed back some ground against the dollar after sharply selling off in recent sessions.
The Politburo, China’s top policy-making body, said in a meeting Friday chaired by President Xi Jinping that the government should roll out policies to support the economy, stabilize consumption and invest effectively to support growth, according to the state-run Xinhua News Agency.
Policy makers said they would step up support and strive to hit this year’s target of 5.5% gross domestic product growth, even as Covid-19 outbreaks and the Russia-Ukraine war have increased the challenges facing the Chinese economy. Many economists and analysts have said the growth target would be hard to achieve, with many major cities in lockdown due to China’s zero-Covid policy.
Hong Kong’s Hang Seng Index gained 4%, while the Hang Seng Tech Index surged 10%, with shares in tech companies such as Alibaba, Tencent Holdings Ltd. , JD.com Inc. and Meituan 3690 15.51% all rising by more than 10%.
In mainland China, the CSI 300 and Shanghai Composite indexes both rose about 2.4%. The onshore yuan strengthened against the U.S. dollar, rising to 6.6175 yuan per dollar after settling at 6.6590 per dollar Thursday.
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