China stock market

Chinese tech stocks surge after Nasdaq closes at all-time high

PUBLISHED : Tuesday, 05 June, 2018, 5:52pm
UPDATED : Tuesday, 05 June, 2018, 5:52pm

Mainland Chinese and Hong Kong stocks closed higher on Tuesday, bolstered by the technology sector, after Apple, Amazon and Microsoft touched fresh records helping to push the Nasdaq to an all-time closing high overnight.

Mainland China’s ChiNext index, heavily weighted towards tech and telecoms stocks, jumped 2.5 per cent to close at 1,746.11. The benchmark Shanghai Composite Index advanced 0.7 per cent to 3,114.20.

In Hong Kong, the Hang Seng Index extended its winning streak to a fourth straight session, ending up 0.3 per cent at 31,093.45. The Hang Seng China Enterprises Index, which tracks the performance of Hong Kong-listed Chinese companies, inched up 0.1 per cent to 12,259.32.

Still, analysts were cautious about the outlook of the overall market, citing worsening US-China relations as a major concern.

“It’s hard for investors to predict the direction, as relations between China and the US have worsened in several areas, and Trump’s behaviour is erratic,” said Ronald Wan, chief executive at Hong Kong-based Partners Capital.

On Tuesday, tech shares extended gains from the previous session, as Hong Kong-listed Chinese online major Tencent Holdings rose 1.2 per cent to HK$420.00. AAC Technologies Holdings, which supplies acoustic components to Apple’s iPhone, gained 1.2 per cent to HK$120.70. Sunny Optical Technology (Group), which manufactures smartphone camera modules, was also up 1.6 per cent at HK$160.20.

On the mainland, Kunshan Kersen Science & Technology, an Apple supplier that makes precision metallic components, soared by its maximum-allowed 10 per cent to 17.68 yuan on the Shanghai Stock Exchange.

Zhejiang Quartz Crystal Optoelectronic Technology, which supplies optical thin film to Apple, was also up 10 per cent to 15.81 yuan in Shenzhen.

The gains followed a rally in their US counterparts on Monday, which pushed the Nasdaq index to record close of 7,606.46.

Apple pushed further into record territory, rising 0.3 per cent to close at US$191.83, as investors upped their bets after the company unveiled its next generation mobile operating system iOS 12, which has faster performance and enhanced features, at its annual Worldwide Developers Conference in San Jose, California.

Microsoft added 0.9 per cent to reach a record US$101.67, after the firm agreed to buy software development platform GitHub for US$7.5 billion in stock. Amazon closed at a new high of US$1,665.27, rising for a sixth straight session.

On Tuesday, Chinese insurance shares also advanced, after Moody’s Investors Service upgraded its outlook for China’s life insurance sector to stable from negative.

In Shanghai, New China Life Insurance jumped 3.7 per cent to 45.57 yuan. Ping An Insurance rose 1.7 per cent to 64.58 yuan.

In Hong Kong, Ping An Insurance’s H shares also gained 1 per cent to HK$79.50. China Life Insurance added 0.9 per cent to HK$22.80.

With additional reporting by Karen Yeung