Hong Kong’s Ping An Good Doctor surges 9 pc, though overall Asia-Pacific trading cautious on coronavirus, earnings worries
- Oil prices tumble to 21-year low, boosting Chinese airlines listed in Hong Kong
- Ali Health jumps 4.5 per cent, Maoyan Entertainment soars 6.9 per cent
Ping An Good Doctor and some other new economy stocks in Hong Kong shot up Monday as investors piled in for fear of missing out on companies expected to succeed in the after-the-coronavirus world.
China’s leading online health care platform jumped 9 per cent, while Alibaba Health Information and Technology climbed 4.5 per cent. Maoyan Entertainment, China’s biggest online movie ticketing platform, shot up 6.9 per cent.
“It seems the virus outbreak is being contained in China, and investors worry that they may miss out on the rally and are driving the new economy stocks to go up,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. “Generally, new economy stocks may have strong earnings growth potential, which is why investors are willing to give them a valuation premium.”
The sector was a standout on a day the city’s benchmark slipped 0.2 per cent.
Mainland stocks gained with the Shanghai Composite Index rising 0.5 per cent. Asia-Pacific stocks saw modest declines, as investors weighed plans by the US, New Zealand and other countries to gradually reopen their economies and awaited a flood of earnings by companies reeling from the coronavirus pandemic.