U.S.-listed China tech stocks are surging again Thursday, following reports the Chinese government is planning further stimulus to boost the world’s second largest economy. E-commerce giant JD.com (JD) stock broke out, while Alibaba (BABA), PDD Holdings (PDD) and Baidu (BIDU) added to recent rallies.

↑
X

NOW PLAYING
AI Levels Up: Inside The Chips Driving Nvidia Stock

The China tech stocks started rallying earlier this week, after China’s central bank announced plans to cut interest rates among other measures.

Economists described the plans as China’s most forceful stimulus efforts since it ended its zero Covid policy in late 2022. On Thursday, Chinese media reported the government had further plans, including cash vouchers to boost consumer spending.

All of this has been good news for beaten-down Chinese tech stocks.

Alibaba stock is up 8% at 103.17 in recent action on the stock market today. Shares are up nearly 25% in September. That would mark the e-commerce giants best month since January 2023. Meanwhile, shares of Alibaba rival JD.com are up 12% at 37.18 in recent action. That marks a breakout beyond a 35.69 cup pattern buy point identified by MarketSurge.

JD, Alibaba Stock Leading China Tech Stocks Higher

Both Alibaba and JD remain well below highs from late 2020 and early 2021, respectively. Alibaba in particular was hurt by a government crackdown on tech firms in 2020.

But Alibaba has rebuilt some momentum this year. Alibaba stock is up 37% and scored a recent breakout. Shares climbed above an 85.79 cup-with-handle buy point, as identified by MarketSurge, on Sept. 19. The tech giant released new AI models and video-to-text capabilities that day.

Alibaba stock has an improving IBD Composite Rating of 84 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.

JD stock, meanwhile, has a Composite Rating of 96 out of 99.

Elsewhere, China internet search leader Baidu is up 7% at 101.22. It is testing highs last reached in July.

PDD Stock, TCOM Jump On News

PDD Holdings, parent company of the Pinduoduo shop in China and Temu globally, is also having a strong day. Shares are up 10% at 125.90 in recent action, nearly overtaking PDD’s 200-day moving average. PDD is working on bouncing back from a dive that followed its Q2 earnings report last month. The stock gained nearly 90% in 2023 but is down nearly 15% year-to-date.

Another stock on the move: Trip.com (TCOM). Shares of China’s largest online travel agency are up 8.2% at 54.88 in recent action. Shares have formed a cup pattern with a buy point of 58, according to MarketSurge. The gains are adding to a strong run for the travel company. Shares are up more than 50% year-to-date.

Meanwhile, WeChat parent company Tencent (TCEHY) stock is up 7% at 56.46 in recent action. The stock on Tuesday broke out above a 50.89 flat base buy point on its weekly chart, according to MarketSurge. Shares of Tencent are listed in Hong Kong and trade over-the-counter in the U.S.

YOU MAY ALSO LIKE:

IBD Live: Learn And Analyze Growth Stocks With The Pros

Get Timely Buy & Sell Alerts With IBD Leaderboard

Top Growth Stocks To Buy And Watch

Alibaba Stock, JD Boosted By Stimulus Plan; Tencent Breaks Out