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China stock market
BusinessChina Business

Alibaba, XPeng drive Hong Kong stocks to two-week high on China recovery outlook, Xi pledge

  • The Hang Seng Index closed at its highest level since June 10, having gained 3.1 per cent for the week
  • Alibaba Group, XPeng and WuXi Biologics led gainers, each rising by at least 5 per cent

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A public screen in Shanghai displays the Shenzhen and Hong Kong stock index levels in February 2022. Photo: Bloomberg
Zhang Shidong
Hong Kong stocks rose to a two-week high as sentiment continued to improve amid a brighter outlook for China’s economic recovery. Positive signals from Beijing this week helped fuel gains in tech and auto stocks.
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The Hang Seng Index advanced 2 per cent to 21,719.06 at the close of trading on Friday, the highest since June 10. The benchmark gained 3.1 per cent for the week. The Hang Seng Tech Index climbed 4.1 per cent, while the Shanghai Composite Index added 0.9 per cent.

Alibaba Group surged 5.5 per cent to HK$113.90, while electric-car maker XPeng jumped 7.3 per cent to HK$136.30. WuXi Biologics and Sunny Optical Technology were also among the biggest gainers, rising more than 8 per cent.

The stock rebound has been strengthening on optimism about China’s recovery from the impact of Covid-19 lockdowns. President Xi Jinping pledged this week that the nation will strive to achieve 5.5 per cent growth this year, fuelling bets that policymakers will take more action to overcome recent setbacks.

Premier Li Keqiang said in a cabinet meeting this week that China will extend a tax exemption on purchases of electric cars to spur consumption, while more cities including Zhengzhou and Wenzhou have eased curbs on home purchases.

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