Chinese stocks in US surge after Hong Kong peers rebound

[NEW YORK] Chinese technology stocks listed in the US are gaining for a third straight day on Thursday after peers in Asia rallied on improved risk appetite.

Shares in Tencent Holdings jumped as much as 5.3 per cent as at 10.01 am in New York, while fellow technology giant Alibaba Group Holding climbed 6.9 per cent. Other tech shares including JD.com, Baidu, Pinduoduo and DiDi Global were among American depositary receipts rising at least 3 per cent.

Chinese technology stocks rebounded from a record low in Hong Kong on Thursday amid signs of renewed interest in one of China's biggest tech names. The shift in sentiment was fuelled by a report that Charlie Munger's Daily Journal had increased its Alibaba stake by 83 per cent last quarter and that US President Joe Biden was planning to meet with Chinese President Xi Jinping before the end of the year.

The Nasdaq Golden Dragon China Index - which tracks 98 firms listed in the US that conduct a majority of their business in China - gained as much as 5.1 per cent, the biggest jump since late August and taking its rally since hitting a 17-month low on Monday to more than 8 per cent. Still, despite this week's brief respite, the gauge remains deeply in the red year-to-date, having fallen 31 per cent.

Chinese assets have come under pressure amid a government crackdown on sectors including technology, property, after-school tutoring and gaming as part of Mr Xi's campaign for "common prosperity".

Investors will be closely watching how mainland Chinese shares trade on Friday, with local equity markets set to reopen for the first time this week after being closed for the Golden Week holiday. While the holiday has provided a brief lull in Beijing's months-long regulatory clampdown, concerns remain that it could be set to resume now that it is over.

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