Chinese tech stocks broke out due to oversold conditions and changes in lending policy

From Baystreet: 2024-05-22 09:09:00

Chinese tech stocks like Alibaba, JD.com, and Tencent broke out last week due to oversold conditions. The Chinese government announced changes to its lending policy, undoing the “3 red lines” real estate policy. Real estate prices fell by as much as 80% in some cities. Builders left homes unfinished, resulting in higher demand for raw materials like copper. Copper prices closed at $5.08, a price not seen since 2022. Companies producing copper include Freeport-McMoRan, Rio Tinto, BHP Group, Souther Copper Corp, and Teck Resources. China announced it will ease mortgage rules and address issues related to completing unfinished homes. The lower lending rates and financial stimulus should help, albeit only slightly.



Read more at Baystreet: Why Chinese Tech Stocks Broke Out