Alibaba, JD.com Stocks Surge. Why China’s Property Stimulus Is Boosting Tech Giants.
China's property stimulus is boosting tech giants Alibaba and JD.com, resulting in significant gains for these internet companies.
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Posted 9/4/2023, 10:17:00 AM
barrons.com
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Global investors are urging China's leadership to increase fiscal stimulus and spend more in order to revive the economy and address the property crisis, as they express frustration with the slow and insufficient measures taken by the Chinese government to boost growth.
Shares of Chinese e-commerce giants Alibaba and JD.com surged after the Chinese government announced measures to boost the country's capital markets, including halving the stamp duty on securities transactions.
China's recent stimulus measures to boost its economy, including reducing down payments for homebuyers and lower rates on mortgages, are impressing the markets and may dictate the direction of the commodity market.
Chinese internet stocks, such as Alibaba (BABA), JD.com (JD), and Baidu (BIDU), have faced challenges this year due to the stalled Chinese economy, but their low valuations and AI capabilities present potential opportunities for investors. Despite their current struggles, analysts remain optimistic about the long-term prospects of these stocks, with JD.com expected to have the highest upside potential of over 80%.