Hong Kong stocks rise to four-week high with earnings in focus as China dismisses Huarong distress

China Mobile, China Unicom and Ping An Insurance will kick off first-quarter earnings reports from Hang Seng Index members from Tuesday

Trip.com jumped on Hong Kong debut, markets in mainland China were steady after regulator dismissed distress at China Huarong Asset Management

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A pedestrian walks past the China Huarong Tower in Hong Kong, which houses China Huarong Asset Management. China says the firm has ample liquidity. Photo: Bloomberg

Published: 10:46am, 19 Apr 2021Updated: 4:48pm, 19 Apr 2021

Hong Kong stocks climbed to a four-week high as traders weighed the outlook for higher corporate earnings and US equities rallied to new records.

The Hang Seng Index rose 0.5 per cent to 29,106.15 at the close of trading, the highest level since March 18. The gauge climbed 0.9 per cent last week after China reported an 18.3 per cent economic expansion last quarter, a major rebound from a pandemic-stricken period a year earlier.

Trip.com, China’s biggest online travel booking platform, rose 4.6 per cent from its initial public offering price to HK$280.20, the latest among US-listed Chinese companies making their secondary listing in Hong Kong amid increased accounting scrutiny by US regulators.

The Shanghai Composite Index added 1.5 per cent. The China Banking and Insurance Regulatory Commission on late Friday calmed market concerns, saying that China Huarong Asset Management has ample liquidity to tackle its debt situation.

Traders are expected to shift their focus to corporate earnings from the macro front this week. China Mobile, China Unicom and Ping An Insurance Group will kick off the release of first-quarter earnings by the companies on the Hang Seng Index starting Tuesday.

The 55 constituents on the benchmark probably posted a 25 per cent increase in profits for the first three months of 2021, according to Bloomberg data, compared with a 30 per cent decrease a year earlier when the outbreak of Covid-19 triggered lockdown measures.