Chinese Tech Stocks Surge on U.S. Fed Rate Cut and AI Growth Prospects
Chinese tech stocks like $BABA-W (09988.HK)$ , $PDD Holdings (PDD.US)$ , $JD-SW (09618.HK)$ and $BIDU-SW (09888.HK)$ saw gains on Thursday after the U.S. Federal Reserve announced a 50 basis point interest rate cut, reducing the benchmark rate to 4.75%-5%.
Key Drivers:
Interest Rate Cut: This move by the Fed is expected to boost discretionary spending in the U.S., benefiting Chinese tech companies with significant U.S. ties.
AI Growth: Chinese firms, including Alibaba, are heavily investing in AI, with the rate cut likely supporting further development in e-commerce, logistics, and cloud technology.
EV Sector: Stocks like $NIO-SW (09866.HK)$ , $XPENG-W (09868.HK)$ , and $LI AUTO-W (02015.HK)$ also rose, driven by the role of AI in autonomous driving and EV innovation.
Interest Rate Cut: This move by the Fed is expected to boost discretionary spending in the U.S., benefiting Chinese tech companies with significant U.S. ties.
AI Growth: Chinese firms, including Alibaba, are heavily investing in AI, with the rate cut likely supporting further development in e-commerce, logistics, and cloud technology.
EV Sector: Stocks like $NIO-SW (09866.HK)$ , $XPENG-W (09868.HK)$ , and $LI AUTO-W (02015.HK)$ also rose, driven by the role of AI in autonomous driving and EV innovation.
Alibaba's upcoming Aspara Conference 2024 will focus on Artificial General Intelligence (AGI), with discussions on autonomous driving and humanoid robots. This AI momentum adds optimism despite U.S. sanctions on advanced tech.
Additionally, People's Bank of China (PBOC) is expected to further stimulate the economy by lowering the reserve requirement ratio (RRR) by 50 bps, providing extra support for Chinese tech.
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