(Bloomberg) — Chinese technology shares advanced as traders continued bargain hunting on hopes that the most intense phase of Beijing’s regulatory clampdown on private enterprise may have passed.
The Hang Seng Tech Index rose 0.9% as of 11:26 a.m. in Hong Kong, extending gains over the past five sessions to about 9%, putting the gauge on track for its biggest weekly jump since late January. Kuaishou Technology and ZhongAn Online P&C Insurance Co were among the top performers on Friday, up at least 3%.
The recent reversal of weeks-long selling of tech stocks is shoring up confidence among some investors that the recovery has more upside to go. Traders largely ignored a warning from China’s supreme court and a government agency against the excessive work hours that pervade the country’s largest corporations.
Alibaba Group Holding Ltd. was down 0.9% while Tencent Holdings Ltd. climbed 0.2%.
The mood has also been upbeat in the U.S., where a bout of frenzied dip buying from retail traders over the last couple of days has helped spur a rally in Chinese stocks listed in America. The Nasdaq Golden Dragon China Index is up more than 10% this week despite falling for the first time in five sessions on Thursday.
Meanwhile, China’s CSI 300 Index rose as much as 1.3%, led by industrial and financial shares.
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