Alibaba, Haidilao lead Hong Kong stocks to near three-month high on China recovery signals as Beijing eases lockdown
- The Hang Seng Index hit its highest close since April 4 with reports this week suggesting an expansion in Chinese manufacturing after a three-month slump
- Alibaba Group surged amid speculation about Ant Group’s restructuring and potential resumption of mega stock offering
The Hang Seng Index rallied 2.4 per cent to 22,229.52 at the close. The Hang Seng Tech Index surged 4.7 per cent, while the Shanghai Composite Index added 0.9 per cent.
Hotpot restaurant chain Haidilao added 9.3 per cent to HK$17.56 after Shanghai said it will resume dine-in service starting Wednesday. Macau casino concessionaire Sands China rose 8 per cent to HK$16.30. Alibaba Group Holding jumped 3.7 per cent to HK$118.10 amid speculation around Ant Group’s business.
Mainland investors have been snapping up local shares via the Stock Connect links. They spent HK$36.2 billion (US$4.6 billion) in 13 straight days through Monday, according to exchange data. Foreign investors have also returned to the onshore market, with net buying totalling 29 billion yuan (US$4.3 billion) in three days.
China’s manufacturing likely expanded in June, reversing contraction in the three preceding months, according to consensus forecasts on the Purchasing Managers’ Index by economists tracked by Bloomberg. The statistics bureau will report on Thursday.
“The key to market sentiment now is the strength of the economic recovery and the magnitude of the stimulus measures,” said Shen Chao, a strategist at HSBC Jintrust Fund Management in Shanghai. “Looking forward to the second half, earnings, valuations and liquidity will be more friendly than the first half.”
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