Ping An, Xpeng, SMIC drive Hong Kong stock gains as robust earnings, Intel outlook lift confidence in recovery

Improved earnings by BYD, Ping An and China Life Insurance handed investors a shot in the arm, while SMIC rallied on Intel’s promising outlook
Five of China’s biggest banks are reporting on Friday while HSBC will release its results on May 2

Hong Kong stock market

Yulu Ao

Published: 10:38am, 28 Apr 2023

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Stocks rose in Hong Kong for a third day, after a surge in earnings from some of China’s biggest companies bolstered confidence in the nation’s economic recovery outlook. Ping An Insurance and chip maker SMIC led the charge.

The Hang Seng Index gained 0.3 per cent to 19,894.57 at the close of Friday trading, after jumping as much as 1.7 per cent to climb above 20,000 level. The Tech Index advanced 1 per cent while the Shanghai Composite Index added 1.1 per cent.

Ping An appreciated 0.9 per cent to HK$56.70 while Alibaba advanced 0.3 per cent to HK$82.05. Xpeng led carmakers higher with a 2.9 per cent surge to HK$37.60. Chip maker SMIC rallied 4.2 per cent to HK$22.55 on Intel’s “green shoots” comments.

“Both the US and Hong Kong markets are driven by better-than-expected earnings,” said Kenny Wen, head of investment strategy based in Hong Kong at KGI Securities. “Maybe investors also expect policy announcements from the Politburo meeting, and economic data during the golden week.”

China’s markets will close for three days for the golden week holiday next week, while markets in Hong Kong will pause only on Monday for Labour Day.

Profits at BYD, the nation’s top-selling car producer, jumped more than 400 per cent in the first quarter from a year earlier, while Ping An’s quarterly earnings increased 49 per cent over the corresponding period, according to filings this week.

China’s Politburo meeting to offer traders policy clues as they eye new bets

The report cards came as a relief to the local market, which was still headed for a 0.9 per cent loss, a second week of setback and its first back-to-back decline since February. Earnings misses outnumbered hits by almost three to one in mainland China, before this week’s report cards, according to Bank of America.

China’s biggest lender Bank of China logged 0.4 per cent to HK$24.7 while its peer including ICBC, Construction Bank closed with little change before jumping as much as 2 per cent, before their report cards later today. HSBC is due to report on May 2, after city rival Standard Chartered showed better earnings this week.

Elsewhere, major Asian markets traded higher. The Nikkei 225 in Japan increased 1.4 per cent and the S&P/ASX 200 in Australia advanced 0.2 per cent, while the Kospi in South Korea rose 0.2 per cent.

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