Chinese stocks rebounded as authorities reportedly consider rescue efforts for its long-struggling financial markets. Hong Kong’s Hang Seng surged on U.S.-traded stocks, such as Ali Baba (BABA), JD.com (J.D.), Nio (NIO), XPeng (XPEV) And BYD (I WILL), sharply increasing.
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Chinese policymakers are seeking to mobilize some 2 trillion yuan ($278 billion), mainly through Chinese state-owned companies, to buy shares locally via the Hong Kong stock exchange, Bloomberg reports, citing sources. They also plan to use some 300 billion yuan of local funds to invest in onshore stocks.
This comes after Premier Li Qiang called for “strong” measures to support stock markets.
The authorities, who are also considering other options, could announce at least some initiatives this week.
Hong Kong’s Hang Seng index, which had been falling for several years, jumped nearly 3%. Alibaba shares rose nearly 5% in Hong Kong, with JD.com up 6%. Chinese electric vehicle makers Nio jumped more than 7% and XPeng 9%. BYD stock jumped nearly 4%.
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