Alibaba, Baidu, and Tencent stocks rise after China's surprise rate cut

From Barron’s: 2024-07-22 09:09:00

Some Chinese stocks surged on Monday due to a surprise interest-rate cut by the People’s Bank of China, aiming to boost economic growth amidst weak second quarter results and a lagging recovery from Covid-19 restrictions. Retailer Alibaba and tech companies like Baidu and Tencent saw gains, while the Hang Seng Index rose 1.3%.

The interest-rate reductions raised concerns about China’s economic expansion as the Shanghai Composite index dropped 0.6%, primarily driven by a decline in energy stocks. The central bank’s actions reflect worries over sluggish growth and a property market downturn, prompting speculation of future economic interventions. Ultimately, the impact of the rate cut on China’s economy remains uncertain.



Read more at Barron’s: Alibaba and Baidu Stocks Rise. Blame China’s Surprise Rate Cut.