Alibaba, Tencent rally as Beijing stimulus plans push China's tech stocks to 13-month high

Chinese tech stocks, including beaten-down names for illustration Alibaba, rallied this week, hitting highs not seen successful much than a twelvemonth aft China's cardinal slope announced measures to stimulate nan world's second-largest economy.

The Hang Seng Tech Index successful Hong Kong, which contains astir of nan large Chinese tech stocks, closed up astir 6% astatine its highest level since early August 2023. The scale is up 20% this week.

Alibaba closed supra $100 per stock for nan first clip since August past twelvemonth successful nan U.S. connected Thursday, aft surging 10% during nan session. On Friday, nan company's Hong Kong-listed banal reached its highest adjacent since February 2023, up astir 5% to 102.50 Hong Kong dollars. The e-commerce giant's shares successful Hong Kong are astir 18% higher this week.

Tencent, nan proprietor of China's biggest messaging app WeChat and 1 of nan largest gaming firms successful nan world, closed up astir 2% astatine 437.80 Hong Kong dollars per share. This is nan firm's highest adjacent successful much than two-and-a-half years and comes aft Tencent's banal rallied astir 49 % this twelvemonth amid a recovery successful its halfway gaming business.

Food transportation elephantine Meituan meantime ended nan convention 8% higher astatine 164.60 Hong Kong dollars a share, nan company's highest adjacent level since February past year.

The marketplace uptick comes aft nan People's Bank of China this week announced a cut to nan magnitude of rate that banks request to person connected hand. The cardinal slope outlined plans to further support nan struggling spot market, including extending measures for 2 years and cutting nan liking rates connected existing mortgages.

These measures person been declared successful nan dream of boosting nan Chinese economy. Prior to nan cuts, investors had been cautious connected Chinese tech stocks for illustration Alibaba and Meituan which are delicate to nan system and user successful China.

However, big-name investor person started to strike a bullish reside connected Chinese stocks. Billionaire hedge money laminitis David Tepper told CNBC connected Thursday that, aft nan U.S. Federal Reserve trim liking rates this month, he bought much Chinese stocks including names for illustration Alibaba and Baidu.

Other names including JD.com and Baidu besides logged stock increases this week.

Despite nan latest upswing, Chinese tech stocks stay importantly disconnected their all-time highs deed successful 2021.

- CNBC's Evelyn Cheng contributed to this report.