Chinese Stocks Attempt a Comeback

Alibaba, JD.com, and other U.S.-listed Chinese stocks made a strong rebound on Thursday following efforts from Beijing to ease concerns about an economic slowdown.

Chinese GDP Growth Target in Doubt

China has set a GDP growth target of 5% for 2023, but economists are growing increasingly skeptical about its attainability. Morgan Stanley revised its Chinese GDP forecast down to 4.7% from 5% on Thursday, while J.P. Morgan had previously lowered its forecast to 4.8% earlier in the week. Barclays also adjusted its forecast to 4.5% from 4.8%.

Measures to Meet Annual Goals

In a speech on Wednesday, Chinese Premier Li Qiang outlined the government's plans to work towards achieving their annual goals. He emphasized the importance of expanding domestic demand through consumption and pro-investment policies. Furthermore, the premier spoke about stimulating the consumption of big-ticket items and driving the transformation and upgrading of traditional industries through new technologies and business models.

Confidence Amidst Challenges

Li acknowledged the challenges facing the economy but expressed the government's determination and confidence in overcoming them. The Xinhua report stated that the premier remains resolute in tackling these challenges.

Stock Rebound on Thursday

Alibaba's American depositary receipts (ADRs) rose 2.8% on Thursday after experiencing a 2.7% decline the previous day. Similarly, JD.com's ADRs increased by 1.6% following a 3% drop on Wednesday. Baidu also saw a rise of 1.3% after a 3.5% decline in the previous session.

While some of this rebound may be attributed to a recovery from Thursday's selloff, it is unclear if it reflects genuine confidence in China's economic recovery.

Impact on Hong Kong Stocks

Li's speech did not have a significant impact on Hong Kong stocks, as the Hang Seng Index closed flat on Thursday. However, the Hang Seng Tech index did manage to close 0.8% higher.