Hong Kong stocks climb to 2-week high as BYD, Ping An Insurance gain on earnings outlook

Stocks added to Monday’s 1 per cent rally as BYD’s stronger results underpinned confidence in earnings outlook

Some 57 of Hang Seng Index’s 80 members have published their latest report cards, averaging 1.8 per cent growth in earnings

Reading Time:2 minutes

A man walks on the street, in front of the large screen displaying the latest stock exchange data, in Shanghai on August 28. Photo: EPA-EFE

Published: 10:50am, 29 Aug 2023Updated: 4:26pm, 29 Aug 2023

Hong Kong stocks rose for a second day to a two-week high, adding to gains from China’s move to cut transaction costs, as stronger earnings from BYD lifted sentiment on EV makers.

The Hang Seng Index advanced 2 per cent to 18,484.03 at the close of Tuesday trading, following a 1 per cent rally on Monday. The Tech Index gained 2.7 per cent and the Shanghai Composite Index added 1.2 per cent.

China’s biggest EV maker BYD surged 5.6 per cent to HK$237.80 after second-quarter profit more than doubled from a year earlier. Ping An Insurance Group rose 3.2 per cent to HK$46.85 while hotpot restaurant operator Haidilao added 2.8 per cent to HK$22, before their earnings reports later on Tuesday.

Elsewhere, carmaker Xpeng added 2.9 per cent to HK$74.30, while peer Nio appreciated 2.4 per cent to HK$88.55. Alibaba Group Holding jumped 2.3 per cent to HK$90.90, and Tencent Holdings rose 1.3 per cent to HK$329.40. Country Garden Services rallied 9.9 per cent to HK$9.45.

“A pickup in stocks can still be expected after measures to rebuild confidence and support the market,” said Yu Tianxu, an analyst at Wanlian Securities. “We recommend big companies, particularly those state-backed ones” with improving fundamentals and high dividends.