Waking up to see Chinese tech stocks $NASDAQ Golden Dragon China (.HXC.US)$up nearly 4%, shining light of Chinese tech stocks $PDD Holdings (PDD.US)$leading the charge, up over 5%.
Xunlei also performed strongly, surging 24.44%, leading gains among Chinese tech stocks. This was driven by a share repurchase announcement as the company plans to buy back up to 20 million USD worth of shares over the next 12 months.
The rise in Chinese tech stocks significantly outperformed US equities, with notable trading volume, indicating that capital is starting to shift towards these stocks, which is the right trend!
One reason is the easing of US-China relations. Several foreign media outlets are reporting that US Secretary of State Blinken will visit China in a few weeks, signaling an improvement in bilateral ties.
The second factor is that multiple state-owned banks cut deposit rates last night. The reduction in risk-free rates is positive for risk assets.
The third point is that foreign capital remains optimistic about the Chinese market, with many asset management giants expressing the view that the domestic economy is in a recovery trend.
Continue to be bullish on PDD, the shining star among Chinese stocks!
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