China Tech Stocks on Brink of Bull Market on Stimulus Hopes
- XPeng leads tech stocks higher on the day thanks to VW deal
- Markets boosted by Politburo meeting but more needed
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A gauge of China tech shares traded in Hong Kong closed just shy of entering a technical bull market over expectations of further stimulus for the nation’s flagging economy.
The Hang Seng Tech Index climbed 2.9%, extending gains from a May low to 19.7%. While shares had been lifted in recent months thanks to easing regulatory constraints and stimulus hopes, a 34% surge in XPeng Inc. after investment plans by Volkswagen AG propelled the gauge higher. Peers including Nio Inc. and Li Auto Inc. also advanced.