Alibaba, JD.com, Tencent drive biggest tech rally in three weeks as Hang Seng Index wraps up tumultuous year as one of the world’s top decliners
- Tech index logged the best gain in three weeks, mirroring an overnight surge in US-listed Chinese stocks, on final day of trading in 2021
- Manufacturing in China grew more than estimated in December, a government report on Friday shows
The Hang Seng Tech Index appreciated 3.6 per cent as trading ended for the year, with valuations appealing to buyers. It was the biggest gain since December 7. The Hang Seng Index rose 1.2 per cent o 23,397.67 while the Hang Seng China Enterprises Index advanced 1.7 per cent to 8,236.35.
Hong Kong’s stock market finished trading for the year at noon, while the trading hours in mainland bourses remained unchanged. In Shanghai, the Composite Index rose 0.6 per cent to close the year at 3,639.78. In the technology hub of Shenzhen, the benchmark Composite Index advanced 0.5 per cent to end the year at 2,530.14.
Gains in tech stocks mirrored an overnight rally in American depositary receipts (ADRs) of Chinese companies traded in the United States. The Nasdaq Golden Dragon China Index of 93 stocks soared 9.4 per cent for its biggest gain since 2008, according to Bloomberg data.
“Today’s gains are just a small consolation as big tech names like Alibaba and Tencent still face some [regulatory] pressure from authorities,” said Zheng Yufei, an analyst at Guosen Securities (HK). “Next year, we will instead see more opportunities in other areas like digital securities and metaverse.”