Las Vegas Sands, JD.com and XPeng headline big rally in China-related stocks

Consumer stocks with ties to China broke higher on Thursday after Chinese state media reported that government officials held a meeting that affirmed the latest efforts to support the economy through stimulus measures/

There are reports that China’s Ministry of Finance and Ministry of Civil Affairs will deliver one-off cash handouts to disadvantaged groups, including the poor and orphans, before the National Day holiday next week. Local authorities have been instructed to ensure the funds reach their intended recipients before October 1, according to state broadcaster CCTV. However, the specific amount of the handouts has not yet been disclosed. Meanwhile, Bloomberg News said that China is considering injecting up to CNY trillion of capital into its biggest state banks to increase their capacity to support the weak economy.

On Wall Street, J.P. Morgan advised investors to expect a flurry of positive news from China over the next month as more easing policy announcements are drip-fed into the market.

Notable gainers included TAL Education (TAL) +37%, Gaotu Techedu (GOTU) +24.7%, New Oriental Education & TEchnology (EDU) +18.8%, MINSO Group (MNSO) +15.1%, JD.com (JD) +14.3%, Yum China (YUMC) +13.0%, Youdao (DAO) +12.1%, H World Group (HTHT) +11.7%, XPeng (XPEV) +11.1%, Trip.com (TCOM) +10.2%, TH International (THCH) +9.9%, NIO (NIO) +7.7%, ZEEKR Intelligent Technology (ZK) +7.2%, and Baozun (BZUN) +5.4%.

Macau casino stocks Las Vegas Sands (LVS) +7.2% and Wynn Resorts (WYNN) +6.5% also broke higher. Estée Lauder (EL) +7.4% also rallied again off the China news.