AP Photo/Michael Sohn
- Chinese tech stocks jumped Wednesday after Chinese Premier Li Keqiang vowed not to pursue a policy of currency devaluation.
- Li said the recent weakening of the Chinese yuan was due to market forces.
- Li's comment will reassure investor confidence in China, Lukman Otunuga, a research analyst at FXTM, said.
- Watch Alibaba, iQiyi, JD.com, Baidu.com, Pinduoduo, Nio trade in real time here.
Chinese tech stocks jumped Wednesday after Chinese Premier Li Keqiang vowed not to pursue a policy of currency devaluation to counteract the tariffs imposed by the Trump administration.
"Persistent depreciation of the RMB will only do more harm than good to our economy," Li said Wednesday at a World Economic Forum event in Tianjin, China. He added that the recent weakening of Chinese currency was due to market forces and the government would not allow a continued devaluation.
In the wake of Li's comments, Chinese tech stocks are higher across the board. Here's the scoreboard:
- Nio (NIO): +9%
- Pinduoduo (PDD): +7%
- iQiyi (IQ): +4.25%
- Alibaba (BABA): +3.7%
- JD.com (JD): 3.2%
- Baidu.com (BIDU): +2.6%
Li's comment will go a long way towards reassuring investor confidence, according to Lukman Otunuga, research analyst at FXTM.
"Not only will it help stabilize the Yuan, but it can also play a factor in helping currencies across the region, when factoring in how important China has become to the global economy," Otunuga said in a note sent out to clients Wednesday.
Li's comments may have been in response to a recent attack from Trump, who just last month repeated his belief that China has been artificially weakening its currency.
The yuan has fallen 9% against the dollar this year, partly offsetting the price impact of the the previously announced 25% tariffs on $50 billion worth of Chinese goods.
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