Hong Kong, China stocks climb as influx of foreign capital into mainland market boosts investor sentiment
- Beijing says it has contained outbreak of virus, while Trump issues latest threat
- Hang Seng and Shanghai benchmarks end with weekly gain
Hong Kong and China stocks advanced on Friday, posting weekly gains, as rising Wall Street stock index futures and an influx of foreign capital into the mainland markets buoyed investing sentiment.
The Hang Seng Index swung between gains and losses before finishing ahead by 0.7 per cent to 24,643.89. It rose 1.4 per cent over the week, in a reversal from last week’s 1.9 per cent loss.
The Shanghai Composite Index advanced 1 per cent to 2,967.63, gaining 1.6 per cent for the week.
“The mood in the market has been steady lately after factoring in several negative factors” such as a second wave of coronavirus in Beijing and rising US-China tensions, said Stanley Chan, director of research at Emperor Securities. “Hong Kong stocks have been lagging behind global markets and could catch up in the third quarter.”
In some of the most eye-catching movements among blue chips, Chinese social media and gaming giant Tencent Holdings edged up 0.5 per cent to HK$460.4, inching closer to its all-time high of HK$471.2 achieved in January 2018.
“Even if the stock rises to HK$500, it wouldn’t be too high,” said Chan, adding that its surging valuation is supported by steady earnings growth from its online games business.