Alibaba, JD.com Stocks Surge. China Property Stimulus Is Boosting Tech Giants.

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Chinese stocks may have led the way on Monday after some good news for the sector, but there were big gains for the country’s biggest internet companies.

E-commerce giant

Ali Baba

(Symbol: BABA) and

JD.com

(JD) have become sensitive to macroeconomic developments in recent weeks, depending on consumer health.

Ali Baba

Hong Kong trade rose 3.3% on Monday;

JD.com

5% increased, and

Don’t go

(BDU) grew by 3.4 percent.

As the US market is closed on Monday for Labor Day, the companies’ American Depositary Receipts (ADRs) could see their own gains in Tuesday’s trading.

The factors that fueled China’s stock rally on Monday were almost exclusively related to the country’s struggling property sector. Beijing and Shanghai followed Guangzhou and Shenzhen in easing their policies and relaxing mortgage regulations to boost housing demand. Land Garden, one of China’s biggest developers, has reached an agreement with lenders to extend bond payments on offshore assets, Reuters reported.

But those moves led to a broad rally in Chinese stocks, including the tech giants. He added to the sentiment that Beijing would continue to come up with stimulus measures.

Goldman Sachs

(GS) analyst Hui Shan said she expected measures to continue until “policymakers are satisfied with the results”.

That’s good news for Alibaba, JD.com and other tech giants with exposure to Chinese consumers. More gloomy economic data is still a risk in the near term but there were some positive signs on that front.

China’s manufacturing sector contracted for the fifth straight month in August, official Purchasing Managers’ Index (PMI) data showed. But, perhaps significantly, the 49.7 reading — just below the 50 mark that separates contraction from expansion — beat expectations.

Data from China’s BG Book, an independent research firm, also showed improvements in a survey of 1,300 companies conducted last month.

Write to Callum Keown at [email protected]