Chinese Tech Stocks Surge 3.74% Led by Alibaba's 10% Gain

On the evening of September 24, Chinese assets experienced a significant surge following the opening of the U.S. stock market. The Nasdaq Golden Dragon China Index rose by 3.74%, while the 2x Bull China Internet ETF surged by over 6%. This rally was driven by strong performances from major Chinese tech stocks, with Alibaba leading the charge, surging by over 10% to reach its highest level since October 2021. This surge was fueled by Alibaba's announcement of increased capital expenditure and its collaboration with NVIDIA on Physical AI. The positive news also boosted Alibaba's Hong Kong-listed shares, which closed up by 9.16% during the Asian trading session.

Other prominent Chinese tech stocks also saw substantial gains. For instance, Wondershare Data and Gotion High-Tech surged by over 12%, while Century Internet and Niu Technologies rose by over 10%. Baidu, JD.com, and other major tech companies also experienced significant increases, with Baidu rising by over 8% and JD.com by over 7%. Additionally, Tiger Brokers, Futu Holdings, and Kingsoft Cloud saw gains of over 5%, while NIO, Pony.ai, and Weibo rose by over 4%. Other notable performers included Beike, Bilibili, Pinduoduo, Li Auto, and Xiaopeng Motors, all of which saw gains of over 2%.

The surge in Chinese assets has attracted increasing attention from international investors. On September 22, the manager of Ark Investment, a prominent investment firm, allocated approximately 2100 million USD to Chinese tech stocks, including Alibaba, Baidu, and Pony.ai. This move underscores the growing interest in Chinese tech stocks among global investors.

The rally in Chinese assets comes amid broader market movements. The U.S. stock market saw mixed performance, with the Dow Jones Industrial Average rising by 0.13%, while the Nasdaq and S&P 500 indices experienced slight declines. Among U.S. tech giants, Tesla led the gains with a surge of over 3%, while Microsoft, Amazon, and Meta saw modest increases. Conversely, Apple, NVIDIA, Google, and Broadcom experienced slight declines.

The surge in Chinese assets also coincides with significant developments in the global copper market. The Freeport McMoRan, a major U.S. mining company, faced a severe setback after a fatal landslide at its Grasberg mine in Indonesia. The accident resulted in the deaths of two workers and left five others missing. The mine, which is the world's second-largest copper mine, has been temporarily shut down, and the company has invoked force majeure clauses. The incident is expected to impact global copper supply, with production levels not expected to return to pre-accident levels until 2027. As a result, global copper prices have surged, with LME copper prices reaching their highest levels since June 2024.

The rally in Chinese assets also comes amid comments from the U.S. Treasury Secretary, who expressed concerns about the Federal Reserve's monetary policy. The Secretary noted that the Fed has not provided clear signals about its interest rate targets, despite the need for rate cuts to support the U.S. economy. The Secretary also highlighted the potential for significant reductions in U.S. inflation and the need for a more accommodative monetary policy to support economic growth. These comments have added to the market's focus on Chinese assets, as investors seek opportunities in a global market characterized by uncertainty and volatility.