Surge in China Tech Stocks Kindles Hopes for Sustained Rally
- Hang Seng Tech Index gains nearly 5% as sentiment lifted
- New batch of game approvals shows business outlook improving
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Alibaba Group Holding Ltd. and Bilibili Inc. led another rally in China tech stocks on Wednesday, giving stock bulls renewed hope that a nascent rebound in tech shares could sustain.
The Hang Seng Tech Index jumped 4.8% after the Chinese government approved 60 new game licenses, bolstering bets that a yearlong crackdown that wiped out $2 trillion in market value from the sector was nearing its end. The gauge pushed further away from its recent downtrend and climbed above a key moving average for the first time in 15 months.