Hong Kong stocks rise, end on the cusp of bull market after longest winning streak since October on earnings optimism

Insurer AIA Group said new business value, an underlying gauge of future profitability, rose 27 per cent in the first quarter and boosted its buy-back plan by US$2 billion

Chengdu became the latest city seeking to resurrect its property market, removing homebuyers’ qualification for purchases and supporting developers’ funding needs

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Bronze sculpture of bull is seen outside Hong Kong Stock Exchange in Central. Photo: Dickson Lee

Published: 11:01am, 29 Apr 2024Updated: 5:04pm, 29 Apr 2024

Hong Kong stocks finished higher nearing bull market territory, defined as a 20 per cent gain from a recent low, as investors were energised by corporate earnings announcements and the official moves to resurrect China’s embattled property sector.

The Hang Seng Index rose 0.5 per cent to 17,746.91 at the close, after rising as much as 2.2 per cent that took its gain to 20 per cent from a January 22 low. The gauge also posted a sixth straight day of gains, the longest winning streak since October.

The Hang Seng Tech Index slipped 0.1 per cent. The Shanghai Composite Index climbed 0.8 per cent, as mainland investors dumped havens, pushing 10-year Chinese government bond yields to the highest in two months.

Insurer AIA Group rallied 6.1 per cent to HK$57.30 after saying that new business value, an underlying gauge of future profitability, increased 27 per cent in the first quarter and boosted its buy-back plan by US$2 billion. China Life Insurance added 2.3 per cent to HK$10.54 after its first-quarter result exceeded the consensus estimate.

AIA Group building in Hong Kong, one of biggest life insurance company in the world. Photo: Shutterstock Images

“Value of new business grew at a double-digit rate across all reportable segments and margin expansion was driven by favourable shifts in product mix,” said Jefferies analysts in a post-earnings report. “AIA has surprised us by adding another US$2 billion to the existing US$10 billion buy-back. This uplift is even more material when set against the [around] US$3.3 billion (of the US$10 billion) which was due to be returned in 2024.”

In the latest sign of officials seeking to resurrect the property market, the southwest city of Chengdu will no longer review homebuyers’ qualification for real estate purchases starting Monday and authorities pledged to meet developers’ reasonable funding demands.

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