Tencent, Ping An lead Hong Kong stock advance as investors anticipate tech earnings and state-owned firms get boost
- Tencent and Alibaba are expected to post strong quarterly profits later this week, according to analyst estimates
- Insurers and bankers get a lift from an effort to boost the valuations of China’s state-owned enterprises
The Hang Seng Index gained 1.8 per cent to 19,971.13 at the close on Monday, recovering from earlier losses. The Tech Index rose 1.3 per cent and the Shanghai Composite Index added 1.6 per cent.
Tencent Holdings led the rally, jumping 3.4 per cent to HK $339.40, Alibaba Group Holding climbed 0.5 per cent to HK$85.05 and Baidu gained 1.1 per cent to HK$120.40. Tencent is expected to post a 19 per cent net profit for the quarter on Wednesday, according to market consensus from analysts compiled by Bloomberg. Analysts also anticipate strong earnings for Alibaba when its quarterly earnings report arrives on Thursday.
Ping An insurance jumped 3.8 per cent to HK$58 while its peers AIA insurance gained 3.1 per cent to HK$82.20 and China Life rose 4.2 per cent to $15.30. Meituan jumped 3.2 per cent to HK$136, while lenders ICBC added 2.1 per cent to HK$4.42 and Bank of China added 2.2 per cent to HK$3.28.
The Shanghai Stock exchange and ICBC are set to hold a session on how to boost the valuations of the financial industry this week, a sign of continuing hype-up for boosting SOEs via supportive government policy.
Meanwhile, the People’s Bank of China (PBOC) offered 125 billion yuan (US$18 billion) of medium-term lending facility, 25 billion more than the amount maturing in May. It comes as China’s central bank kept its medium-term lending interest rate at 2.75 per cent for the ninth straight month, in line with market expectations.
Other major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.8 per cent and Australia’s S&P/ASX 200 added 0.1 per cent, while South Korea’s Kospi retreated 0.2 per cent.
Additional reporting by Shidong Zhang