Alibaba, Geely lift Hong Kong stocks on China stimulus bets as Xi pledges to achieve 5.5 per cent growth target
- Xi pledged to achieve the national growth target of 5.5 per cent despite doubts among economists and investment banks after losses induced by Covid-19 lockdowns
- Geely Auto led auto stocks higher while NetEase and Alibaba logged big gains as traders counted on policy support to drive corporate earnings
The Hang Seng Index gained 1.3 per cent to 21,273.87 at the close on Thursday. The Hang Seng Tech Index added 2.3 per cent, while the Shanghai Composite Index advanced 1.6 per cent.
Geely Automobile and BYD surged more than 4 per cent for the biggest gains on the benchmark after the State Council said China may extend the tax break on electric-car purchases. Alibaba Group Holding added 6.4 per cent to HK$108 and NetEase jumped 2.3 per cent to HK$142.40.
“The market will face a favourable policy front through year-end, with the government stressing stability in growth, employment and consumption,” said Zhou Zhengfeng, an analyst at Nanjing Securities. “That will help sustain the stock rebound, though the road will be bumpy.”
China will strive to meet the growth target for 2022 by adjusting its macro policy and implementing more effective measures, Xi said in a virtual keynote speech at a business forum on Wednesday.