Shares of Meituan-W, the major Chinese food delivery and e-commerce platform, soared by 9.79% on Thursday, as Chinese tech stocks witnessed a broad rally fueled by growing optimism around the country's equity markets.
The surge in Meituan-W's stock price was part of a larger uplift in Chinese equities, with the Nasdaq Golden Dragon Index, which tracks US-listed Chinese companies, soaring 19% over the past four days. This rally was driven by a coordinated economic plan unveiled by China's Politburo this week, which included measures to stimulate consumption, rein in local government debt, and stabilize the troubled real estate market.
According to Scott Rubner, managing director at Goldman Sachs Group Inc., the long-awaited recovery in Chinese equities may have finally arrived. He noted that being underweight Chinese stocks has been the "largest consensus trade" in the global market, and that demand for bullish call options expiring at the end of the year is increasing, indicating a "favored post-US election trade" in re-emerging markets, including China.
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