Alibaba Group Holding Limited BABA stock is trading higher after several buy-back proposals by bellwether Chinese companies boosted confidence, and industrial profits rose for a second straight month.
EV battery maker Contemporary Amperex Technology (CATL) and air-conditioner maker Gree Electric Appliance plan to spend up to 3 billion yuan ($410 million) each to buy back their Shenzhen-listed shares, SCMP cites exchange filings.
Bohai Securities analyst Song Yiwei expects the stock buy-backs to stabilize liquidity in the market. The particular government bond issuance posed a significant boost to investor optimism.
This week, China unleashed a 1 trillion yuan special government bond issue to fund disaster relief and reconstruction. In contrast, the sovereign wealth fund bought exchange-traded funds tracking yuan stocks on Monday.
Hong Kong also proposes to cut stamp duty on stock transactions and ease restrictions on home purchases.
Meanwhile, Alibaba stock also remained buoyed by Taobao and Tmall Group's presales for its Singles' Day promotion. The group is offering over 80 million products at their lowest prices on the 15th anniversary of Singles' Day.
Price Action: BABA shares traded higher by 1.79% at $83.99 premarket on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
