Alibaba Leads Tech Rally at Hong Kong Stock Exchange

The stock market in Hong Kong rose sharply on Monday. Chinese tech companies, in particular, showed substantial profits, led by Alibaba. In addition, investors processed reports that Chinese tech billionaire Jack Ma is relinquishing control of Alibaba’s financial subsidiary, Ant Group.

 

The move may end the Chinese government’s campaign to tackle the dominance of large tech companies in the country.

Alibaba was set 7 percent higher. Ma’s step back may also pave the way for Ant to revive plans for an IPO. Other tech companies, such as Tencent and NetEase, increased to 2.7 percent. The Hang Seng index in Hong Kong gained 1.4 percent. The casino companies also did good business after releasing travel restrictions between Hong Kong, China and gambling paradise Macau. China reopened its borders last Sunday after three years of corona restrictions.

MGM China, Wynn Macau and Sands China rose to 4.9 percent. The stock market in Shanghai rose 0.5 percent.

In Tokyo, investors had a long weekend due to a national holiday. Stock markets in South Korea and Australia gained ground. Investors relied on the price gains on Wall Street, where Friday’s reaction to the US jobs report was positive.

The better-than-expected wage growth, in particular, fueled hopes that the US central bank may be able to slow down by raising interest rates to bring inflation under control. As a result, the Kospi in Seoul gained 2.5 percent, and the All Ordinaries in Sydney gained 0.6 percent.

The stock market in Taipei rose 2.6 percent despite geopolitical tensions between Taiwan and China. On Monday morning, the island state condemned China’s military exercise in the Taiwan Strait. China regards Taiwan as a renegade region that must eventually come back under the authority of the People’s Republic.

Chipmaker TSMC climbed 4.9 percent. The Taiwanese government has approved plans to give tax breaks to research and development chip companies. Taiwan wants to maintain its leading position in the technological field.

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