Shares of Chinese technology companies rose on the last day of trading of the year, after big gains on Wall Street for Chinese companies listed in the U.S. on Thursday, though that rally was not enough to shake off the darkness after a sad 2021 for the sector marked a regulatory shock.
Hong Kong’s Hang Seng index rose 1.2 percent on Friday, while the technology index on the stock market rose 3.6 percent. China’s CSI 300 shares in Shanghai and Shenzhen rose 0.4 percent.
The rise came after an increase in the Nasdaq Golden Dragon index of Chinese large and medium-sized companies, which jumped 9.4 percent on Thursday, its best one-day performance in more than a decade. The increase was driven by double-digit profits by companies including search engine Baida, video sharing platform Bilibili and New Oriental Education.
However, those gains weakened on Friday, with Baidu falling about 1 percent and the e-commerce group Alibaba falling 3 percent by the afternoon in New York, contributing to a 0.1 percent drop in the Golden Dragon index.
Earlier gains were also at odds with index results for the rest of the year. The Golden Dragon Index fell 42 percent in 2021, according to the Chinese president’s campaign Xi Jinping curb the country’s technology leaders and the threat of forced deletion from American capital markets they took their toll.
Gains in Asia on Friday boosted some of China’s largest technology companies, with Alibaba adding 8 percent in trading in Hong Kong and its rival JD.com about 5 percent. NetEase, a gaming company, rose just under 4 percent, while food delivery group Meituan added 3.2 percent.
Dickie Wong, head of research at Kingston Securities, said last year’s experiments had already been evaluated and that market sentiment was returning to China’s technology sector. “Internet and technology-related stocks are now trading at extremely low values,” he said. “It’s time to go back.”
Market enthusiasm came after China reported a slight increase in manufacturing activity in December despite a slowdown in the real estate sector, energy supply problems and coronavirus outbreaks.
The official index of procurement managers rose to 50.3, above 50.1 in November, according to the Central Bureau of Statistics, defying analysts’ expectations of readings below 50, which would indicate a contraction.
The rebound on Friday was not enough to erase Hang Seng’s 2021 defeats. The broader index fell 14 percent in 2021, and the Hang Seng Tech index lost 48 percent since its February high.
The share price of Alibaba, which was penalized with a record $ 2.8 billion for antitrust violations in April, nearly halved in Hong Kong in 2021, doc Meituan is down by more than a fifth, and JD.com and Tencent have fallen by almost a fifth.
Elsewhere, Wall Street stocks pushed lower in weak trading on the last day of the year, following a muted session in Europe with the Stoxx 600 index falling lower and the British FTSE 100 ending the trading day shortened by 0.25 percent. Share price Hunter Douglas, a Dutch manufacturer of window coverings and architectural products, jumped 70 percent after FT reported on Thursday that 3G Capital had acquired a majority stake in the company, the first major transaction for a global investment group since 2015.
Yields on US Treasury reference 10-year bonds were stable at 1.51 percent, and trading is expected to be easy during the day after the Securities and Financial Markets Association recommended early market closure for the holidays, as opposed to the stock market. ‘all day trading in the US.
Brent oil, the international benchmark for oil, fell more than 1 percent to $ 78.29 a barrel.
Additional reporting by Naomi Rovnick of London
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