Chinese tech stocks rose to the highest level in close to three weeks as official approval of Tencent Holdings acquisition reduced investor concerns about China’s recent regulatory clampdown, according to a report released by Bloomberg on Tuesday.
Tencent’s acquisition of search engine developer Sogou got approval by Chinese anti-movnopoly regulator. The Hang Seng Tech Index rose by 1.9%, the biggest gain since June 25.
Over the month, China’s increased scrutiny over data collection and foreign listings led to the fall of tech stocks by 10%.
The regulators are still evaluating each deal individually and not rejecting them universally. Any positive news from the regulators would encourage buying on the dips in the sector.
Internet giant Meituan expanded by 3.4% following the barring of Didi Chuxing from providing new downloads.