By
Temitope Olatunji
March 28th, 2024
After the announcement of the Q4 performance, the Hang Seng Tech index rebounded from losses, gaining 3.05%.
Chinese tech stocks jumped on Monday due to a 14% increase by Meituan in mixed Asia trading. Specifically, Meituan stock added 14.37% on the 28th of March, while Tencent stock grew 3.82% on the same day. On the other hand, there were records of declines in oil prices. While international benchmark Brent crude slipped 2.61% to $117.50 per barrel, US crude futures went down 2.96% to $110.53 per barrel.
On the 25th of March, Meituan announced revenue generated in the last quarter of 2021. The revenue came out better than expected at 19.52 billion yuan, equaling $7.78 billion. Before then, data from Refinitiv Eikon revealed that analysts had expected Meituan’s revenue for the quarter to be 49.2 billion yuan.
Chinese Tech Stocks on the High Side
After the announcement of the Q4 performance, the Hang Seng Tech index rebounded from losses, gaining 3.05%. Notably, it was indeed a mixed trading performance, with increases and declines. Some other Chinese tech stocks that plunged include Xiaomi and JD.com. Xiaomi stock dropped 0.28%, and JD.com shares fell 2.01%.
Speaking to CNBC’s “Squawk Box Asia,” chief investment officer at AIA Mark Konyn said:
“Even if you look now, where we see very significant and sharp falls so that valuations now are at much more reasonable levels, I think it’s still quite difficult for investors…to really build the courage to go back in at these levels.”
Meanwhile, mainland China’s Shanghai Composite dropped 0.13%, and the Shenzhen component declined 1.066%.
Between January and February, Chinese industrial profits increased, according to data released during the weekend. Compared to the previous year, China’s industrial firms rose 5.0% during the first two months of the year. Since the initial outbreak of the coronavirus in 2020, China has experienced yet another dire health crisis. This made the authorities enact policies that triggered concerns among investors who had been hoping for the better.
With recent happenings, investors are hopeful that the rebound will continue. Last Friday, Chinese tech stock plummeted with a 2.47% drop from Hang Seng. On that day, Hong Kong’s Hang Seng closed at $21,404.88 after an earlier loss of almost 3%. At the same time, the Shanghai Composite fell 1.17% to close at 3,212.24, and the Shenzhen Component lost 1.89% to 12,072.73. In addition, the CSI 300 missed 1.8% to 4,174.57.
The same goes for Japan and Australia’s stocks, which moved positively and negatively. As Japan stocks went up and down, Australia’s S&P/ASX 200 was in the positive territory.