Most Hong Kong stocks gain as developers rally on China stimulus bets while Tencent, Lenovo restrain market advance
- Longfor, Country Garden led the charge in Hong Kong trading amid growing speculation Beijing will deliver stimulus tonic soon
- Government reports later this week may show more wobbles in China’s post-pandemic economic recovery
The Hang Seng Index rose as much as 1.4 per cent before closing with a 0.1 per cent loss to 19,099.28. The benchmark had risen 4.9 per cent over the preceding two trading days. The Tech Index slipped 0.2 per cent while the Shanghai Composite Index tumbled 1.2 per cent.
Developer Longfor Group surged 7.8 per cent to HK$18.34 while peers Country Garden jumped 6.2 per cent to HK$1.55 and China Resources Land strengthened 4.6 per cent to HK$32.95. Tencent Holdings fell 2.1 per cent to HK$331.20, while PC maker Lenovo Group lost 1.9 per cent to HK$7.37.
China’s top 100 property developers reported a 9.1 per cent rise in contracted sales in the first five months this year versus the same period last year, according to real estate consultancy CRIC. Even so, sales in 2022 amounted to only about 64 per cent of pre-pandemic levels in 2019.
“As a property market hard landing has become increasingly likely and as the property fallout has continued to cripple the economy and financial markets, we believe Beijing will not sit idle,” Nomura said in a report on Tuesday. China’s recovery remains weak and stimulus may favour other priority sectors, the firm added.
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Official reports this week may show more wobbles in China’s faltering economy. Exports probably fell 1.3 per cent in May from a year earlier, compared with an 8.5 per cent gain in April, economists forecast before an official report on Wednesday. A Friday report may show producer prices fell 4.4 per cent, after a 3.6 per cent drop in April.