Chinese tech firms posted their biggest rally on Tuesday as Tencent Holdings Ltd.’s repurchase program boosted market sentiment, Bloomberg reported.
- The Hang Seng Tech index jumped 1.6% to mark the biggest gain since late July and bring the rally since August’s low up to around 17%. Growth was driven mainly by Tencent, Meituan, and Alibaba Group Holding.
- Tencent boosted sentiment with its HK$100.5-million buyback program, driving traders to boost into the market this week. It has continued its share redemption program almost daily since the release of its second-quarter results in August.
- The index growth was also attributed to less warnings by Chinese regulators in the past days, coupled with more specialized regulations. Analysts believe this drove investor sentiment to be more constructive on China’s tech stocks.
The index has repurchased a cumulative 2.2 million shares at an average price of HK$464 apiece. TME is up 2.46% premarket, 3690 is up 4.04%, and BABA up 2.23% premarket.