(Bloomberg) -- Chinese technology stocks rallied for a second day amid optimism over Tencent Holdings Ltd.’s buyback and as Cathie Wood bought back into JD.com after its results.
The Hang Seng Tech Index rose as much as 5%, adding to Monday’s 2.1% gains, after falling for five straight weeks to the lowest level since its July 2020 inception on Friday. The gauge has been trapped in a technical bear market since the first week of March, and plunged into so-called oversold territory last week.
Sentiment was boosted after JD.com reported quarterly sales that beat estimates and Wood’s Ark Investment Management, which has been dumping Chinese tech stocks this year, bought back 164,889 American depository receipts of the company on Monday. Tencent’s move to continue purchases of its shares also instilled some confidence in traders.
While investors are still concerned about regulations, earnings such as those from JD.com “have partly offset some of the worries,” Linus Yip, a strategist at First Shanghai Securities in Hong Kong, said by phone. “There is some bottom fishing in the market.”
Shares of Tencent rose as much as 4.9% while its rival Alibaba Group Holding Co., which dropped to a record low on Monday, gained as much as 5.7%. JD.com jumped as much as 10.5%, the most since July 29.
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