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 US on Thursday, although that growth was not enough to break the darkness after the sad 2021 for the sector marked regulatory shock.
Hong Kong’s Hang Seng index rose 1.2 percent on Friday, while the technology index of the stock market rose 3.6 percent. China’s CSI 300 shares listed in Shanghai and Shenzhen rose 0.4 percent.
The rise followed 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 rise was driven by double-digit profits from companies including search engine Baidu, video-sharing platform Bilibili and New Oriental Education.
However, those gains weakened on Friday, with Baidu falling about 1 percent and e-commerce group Alibaba 3 percent by the afternoon in New York City, contributing to a 0.1 percent drop in the Golden Dragon index.
Earlier gains were also at odds with the performance of the index 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 the list they took their toll on American capital markets.
Profits in Asia on Friday were boosted by 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, grew just under 4 percent, while food delivery group Meituan added 3.2 percent.
Dickie Wong, head of research at Kingston Securities, said testing last year had already been assessed and that market sentiment was returning to China’s technology sector. “Shares related to the Internet and technology are now trading at extremely low values,” he said. “It’s time for the return ball.”
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 epidemics.
The official index of procurement managers rose to 50.3, in 50.1 in November, according to the National 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 price of the share of Alibaba, which was penalized a a record $ 2.8 billion for antitrust violations in April, almost halved in Hong Kong in 2021, while Meituan is down by more than a fifth, and JD.com and Tencent have fallen by almost a fifth.
Elsewhere, shares on Wall Street weakened in weak trading on the last day of the year, after 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 the ten-year US Treasury reference note were stable at 1.51 percent, and trading is expected to be light throughout the day after the Securities and Financial Markets Association recommended early market closure for the holiday, as opposed to the stock market. all day trading in the US.
Brent oil, the international oil benchmark, fell more than 1 percent to $ 78.29 a barrel.
Additional reporting by Naomi Rovnik from London
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