Hong Kong stocks bounce back, led higher by financials, Tencent
Hong Kong’s benchmark Hang Seng Index climbed 379.9 points, or 1.29 per cent, to 29,839.53
Technology and financial shares powered a rebound in Hong Kong stocks on Tuesday, spurred on by a recovery in US markets despite thin trading volume ahead of the upcoming Lunar New Year holiday.
The benchmark Hang Seng Index climbed 379.9 points, or 1.29 per cent, to 29,839.53. The Hang Seng China Enterprises Index, known as the H-share index, added 0.88 per cent to 12,004.51.
Turnover for the main board reached HK$128.8 billion (US$16.47 billion), reflecting another thinly traded session after it dropped on Monday to a one-month low of HK$135.5 billion.
Hong Kong’s stock market will close from midday Thursday and reopen on February 20. Markets in Shenzhen and Shanghai will be shut from the regular close of trading on Wednesday and reopen on
February 22. The Stock Connect will be shut down the end of trading Tuesday and reopen on February 21.
“Hong Kong stocks have rebounded on the back of a recovery in the US market, but the momentum is limited due to the holiday effect,” said analysts from Wing Fung Securities in a research report on Tuesday. “The absence of mainland investors from trading in Hong Kong stocks adds to the pressure.”
The technology and financial sectors posted strong gains.
Tencent Holdings jumped 3.12 per cent to HK$422.4 and Sunny Optical Technology jumped 5.68 per cent to HK$119, after it estimated last year’s net profit had increased more than two fold on the back of higher sales and rising prices for smartphone cameras. AAC Technologies gained 3.4 per cent to HK$148.9.
“Apple’s announcement on Monday to revamp the iPhone also had a positive effect on the tech companies listed in Hong Kong, many of which produce parts for it [the smartphone],” Louis Tse, managing director at VC Asset Management, said on Tuesday.
Meanwhile, Ping An Insurance rose 3.65 per cent to HK$82.35, and ICBC gained 1.39 per cent to HK$6.55.
Hong Kong International Construction Investment Management, owned by financially troubled mainland conglomerate HNA Group, soared as much as 15 per cent to HK$2.42 after it said it would sell two land plots at Hong Kong’s former Kai Tak airport site to Henderson Land Development for HK$16 billion (US$2 billion).
The company’s stock closed at HK$2.26, up 7.11 per cent.
Henderson Land Development advanced 1.12 per cent to HK$49.60.
In mainland trading, the Shanghai Composite Index gained 1 per cent to 3,184.96 and the large-cap CSI 300 Index rose 1.17 per cent to 3,935.63.
The Shenzhen Composite Index and the start-up board index ChiNext gained 0.41 per cent and 0.03 per cent respectively to 1,730.83 and 1,648.58.