These 4 Stocks (and 1 ETF) Make Big Gains On China Stimulus Package

The interest rate cuts, and further economic stimulus announced last week by Chinese authorities, continue to boost the stocks representing interests in that nation. It’s actually been more of a rally than that seen in U. S. stocks after the Fed’s rate cut declared earlier this month.

These New York Stock Exchange listed securities with corporate headquarters in the big Asian county have seen extraordinary moves upward in price. It’s not just those casino stocks with the Macau resorts. The entire China-based sector is coming back to life.

NYSE China-based stocks blast higher.

The daily price chart for the iShares China Large-Cap ETF:

This fund contains the 50 largest of the large cap Chinese stocks. The idea is that investors receive a certain amount of diversification otherwise unavailable in the purchase of just a single security or two. This ETF’s price action is widely followed as a representative of Chinese investing in general.

Note the dramatic rise since last week, capped by today’s higher high which then got sold as the session progressed. I’ve red-circled the gap ups that took place following the stimulus announcement. It’s unusual to see one big gap up on a major ETF chart followed by another big gap up just days later. Not unheard of, but unusual.

Alibaba Group Holding.

The internet retail stock has a market capitalization of $230 billion. Based in Hangzhou, China, the price took off last week and continued upward today before the selling arrived. Note that the 50-day moving average had crossed above the 200-day moving average in June. You can see the two gap-up areas on this chart as well.

Noah Holdings.

From corporate headquarters in Shanghai, this asset management firm now possesses a market cap of $815 million. The stock is lightly traded with an average daily volume of 247,000 shares. Although the September rally has re-ignited the price, Noah remains below the May peak.

TAL Education Group.

With headquarters in Beijing, the company offers education and training services in China. Market cap is $5.41 billion. The government’s stimulus announcement last week had taken the stock from $7.50 to as high as $13 today before the sellers took over. Note the heaviness of the buying on the volume bars below the price chart.

ZEEKR
ZKsync
Intelligent Technology Holdings:

Zeeker Intelligent Technology, with a market capitalization of $5.52 billion, is an electric vehicle manufacturer owned by Geely Automobile Holdings and based in Hangzhou. Trading at $13 in mid-August, the stock reached $25+ today, almost a double.

No artificial intelligence was used in the writing of this post.

More analysis and commentary at johnnavin.substack.com.