Shares of JD-SW, the logistics and e-commerce arm of JD.com, surged by around 6.62% on Thursday, October 10th, 2024, riding a broader rally in Hong Kong and Chinese tech stocks amid renewed optimism over policy support for the capital markets.
The stock's gains were part of a broader uptick in the Hong Kong market, with the Hang Seng Index climbing 4.2% and the Hang Seng Tech Index advancing 3.9%. Other Chinese tech giants like XPeng, Meituan, Alibaba, and Tencent also saw their shares rise, as investors cheered a fresh move by China's central bank to aid the capital markets.
On Thursday, the People's Bank of China announced the launch of a new 500 billion yuan ($70.62 billion) funding scheme, allowing financial institutions to use their assets, including bonds and stocks, as collateral in exchange for highly liquid assets like treasury bonds and central bank bills. The scheme aims to provide easier access to funding for institutions to buy stocks, potentially boosting liquidity and sentiment in the capital markets.
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