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Chinese stocks rally in Hong Kong ahead: Alibaba Group (BABA), Baidu Inc (BIDU), Cheetah Mobile Inc (CMCM),

Chinese stocks in Hong Kong rallied the most in two months before the conclusion of the Federal Reserve meeting after the gauge TRADED AT its cheapest level relative to global peers in 12 years. Oil producers surged.

The Hang Seng China Enterprises Index jumped 2.6 per cent to 9,588.15 at 10.12am, heading for the steepest advance since October 7. Energy companies led gains after China’s National Development and Reform Commission signalled it won’t reduce fuel prices. PetroChina Co which slid to a seven-year low this week, and China Petroleum & Chemical Corp. climbed more than 5 per cent. The Shanghai Composite Index added 0.4 per cent.

The H-shares gauge’s surge made it the best performing major index in Asia on Wednesday, joining a global rally for equities as Fed officials start a two-day meeting at which they’re widely expected to raise interest rates for the first time since 2006. The index, which has slumped 20 per cent this year, is valued at the biggest discount versus the MSCI All-Country World Index since 2003, according to data compiled by Bloomberg.

“The possible interest-rate increase by the Fed is what the market has all known about and that’s not something coming as a surprise,” said Wei Wei, an analyst at Huaxi Securities Co in Shanghai. “The scenario has already been well priced in. Therefore, that’ll help the stock market to technically recover from the correction. The valuations are low and a bit attractive.”

Shares of Alibaba Group Holding Ltd (NYSE:BABA), traded up 2.38% during last trading session on a U.S. exchange, closing at $82.49. The company now has a market value of $ 207.25B. The stock, after recent close, is 5.70% above their SMA 50 and -25.82% below the 52-week high. The worst hit in its 52 week range is $57.20 per share, with $111.20as its 52 week best price. Its latest closing price has a distance of 0.91% from SMA20 and is 4.08% above than SMA200.

Baidu Inc (ADR) (NASDAQ:BIDU) closed U.S. trading at $199.13, up 2.70% from previous close. The year-to-date (YTD) performance reflected a -12.65% below last year. During the past month the stock gains 2.67% bringing three-month performance to 32.44% and six-month performance to -4.95%. For this company, beta value at 2.24 represents it is more volatile to the shift in the market.

Cheetah Mobile Inc (ADR) (NYSE:CMCM) settled at $17.25 during New York trading, up 4.74% from previous close and at a distance of -5.43% from 20-day simple moving average. In the last trading session, the stock’s price moved -22.62% below its 200 day moving average. The stock is currently trading -5.93% below its SMA 50. This stock is more risky when compared to the shifts in the equity markets as its beta value is standing at 17.25.