Chinese Tech Stocks Jump After Tencent Gets Deal Approval
(Bloomberg) -- Hong Kong-listed Chinese tech stocks rose the most in nearly three weeks on Tuesday as official approval for a Tencent Holdings Ltd. acquisition eased investor concerns about Beijing’s recent regulatory crackdown.
Tencent’s purchase of search engine developer Sogou was approved by China’s anti-monopoly regulator, according to a statement on the website of the State Administration for Market Regulation. The Hang Seng Tech Index jumped 1.9% -- its biggest gain since June 25 -- while Tencent climbed 3.9%
The gauge of the city’s tech stocks had fallen as much as 10% this month after China vowed to increase scrutiny over data collection and overseas listings.
“Regulators are still considering each deal case by case and not rejecting all of them. The sentiment is not that negative now,” said Castor Pang, head of research at Core Pacific Yamaichi. “Any good news will trigger buying on dips in the sector.”
Elsewhere, internet giant Meituan rose 3.4% after Caijing reported Monday that the company re-launched a ride-hailing app after industry leader Didi Chuxing was barred from offering new downloads. Short-video streaming platform Kuaishou Technology jumped 5.7% and Alibaba Group Holding Ltd. gained 4%.
©2021 Bloomberg L.P.