Chinese stocks staged a sharp rebound as signs that the Federal Reserve is close to the end of its tightening cycle helped rekindle risk sentiment.

The Hang Seng China Enterprises Index rose as much as 4.3%, the most in three months, led by property and technology companies. The Hang Seng Tech Index, whose members are mostly growth names that usually benefit from a lower US rate, added as much as 4.9%.

The rally comes after weeks of selloff that saw the HSCEI gauge tumble into a bear market on disappointing economic data and rising Sino-American tensions. While most of the worries over China remain, sentiment took a turn for the better as Fed officials signaled they plan to keep interest rates steady in June. Key gauges were hovering near oversold levels, suggesting it was about time for some dip-buying.

“The Fed’s potential pause in rate hikes at the June meeting helped boosted sentiment for tech shares in Hong Kong today and released some pressure from yuan depreciation,” said Steven Leung, executive director at UOB Kay Hian Hong Kong Ltd. “The Hang Seng Index, looking at RSI, is also at a very oversold level that is even below the end of February.”

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Chinese stocks have been largely trending downward since the reopening rally cooled at the end of January. Bets that they will soon rebound had proven elusive, and investors are now waiting to see if the gains Friday will be sustainable. The latest data on manufacturing and services showed the economy is on a wobbly footing, while the yuan’s weakness have accelerated outflows.

Strategists at Goldman Sachs Group Inc. slashed the target for the MSCI China Index to 70 from 80 as they reduced earnings estimates and saw a stronger forecast for the greenback versus the yuan. But they retained an overweight recommendation, adding that investors’ concerns have been priced in.

On the mainland, the CSI 300 benchmark advanced as much as 1.4%.

Investors are awaiting new data releases likely next week on inflation and credit to gauge the health of the economy.

“I do think there is some room for the Hong Kong market to rebound,” though they will still lag the peers in the US and EU, said Dickie Wong, director of research at Kingston Securities Ltd. “There are a lot of concerns over China’s economic recovery and the youth employment rate is very high. The 5% GDP target looks increasingly unattainable.”