Shares in Chinese companies were rallying on Tuesday amid renewed optimism that the country would loosen its strict Covid-19 measures which have dampened growth in the world’s second-largest economy.

Hong Kong’s

Hang Seng Index

surged 5.2% on Tuesday, led by the

Hang Seng Tech Index

which gained 7.8%. Chinese tech stocks listed in New York were also buoyed, with

Alibaba

(ticker: BABA) up 6% in the premarket and e-commerce peer

JD.com

(JD) 7% higher.

Baidu

(BIDU) rose 6% and

Pinduoduo

(PDD) jumped 8%.