Alibaba, Tencent rally as Beijing stimulus plans push China's tech stocks to 13-month high

Chinese tech stocks, including beaten-down names like Alibaba, rallied this week, hitting highs not seen in more than a year after China's central bank announced measures to stimulate the world's second-largest economy.

The Hang Seng Tech Index in Hong Kong, which contains most of the big Chinese tech stocks, closed up nearly 6% at its highest level since early August 2023. The index is up 20% this week.

Alibaba closed above $100 per share for the first time since August last year in the U.S. on Thursday, after surging 10% during the session. On Friday, the company's Hong Kong-listed stock reached its highest close since February 2023, up nearly 5% to 102.50 Hong Kong dollars. The e-commerce giant's shares in Hong Kong are around 18% higher this week.

Tencent, the owner of China's biggest messaging app WeChat and one of the largest gaming firms in the world, closed up nearly 2% at 437.80 Hong Kong dollars per share. This is the firm's highest close in more than two-and-a-half years and comes after Tencent's stock rallied around 49 % this year amid a recovery in its core gaming business.

Food delivery giant Meituan meanwhile ended the session 8% higher at 164.60 Hong Kong dollars a share, the company's highest close level since February last year.

The market uptick comes after the People's Bank of China this week announced a cut to the amount of cash that banks need to have on hand. The central bank outlined plans to further support the struggling property market, including extending measures for two years and cutting the interest rates on existing mortgages.

These measures have been declared in the hope of boosting the Chinese economy. Prior to the cuts, investors had been cautious on Chinese tech stocks like Alibaba and Meituan which are sensitive to the economy and consumer in China.

However, big-name investor have started to strike a bullish tone on Chinese stocks. Billionaire hedge fund founder David Tepper told CNBC on Thursday that, after the U.S. Federal Reserve cut interest rates this month, he bought more Chinese stocks including names like Alibaba and Baidu.

Other names including JD.com and Baidu also logged share increases this week.

Despite the latest upswing, Chinese tech stocks remain significantly off their all-time highs hit in 2021.

- CNBC's Evelyn Cheng contributed to this report.