Shares of Chinese technology companies rebounded in Hong Kong after a report that U.S. audit officials have completed the first round of on-site inspection of U.S.-listed Chinese companies.
The tech rebound has helped push the city’s benchmark Hang Seng Index HSI, +5.36% 5.3% higher to 16161.14, recouping all its losses since two weeks ago, when Chinese leader Xi Jinping’s consolidation of power after the party congress spooked investors. The possible positive development caused foreign investors to cover their short positions on tech stocks, BNP Paribas Wealth Management chief investment adviser Grace Tam said.
But she cautioned that the rebound might be short-lived as “maybe we still need to wait for a few weeks to see the preliminary findings of the auditing.”