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Hong Kong stock market
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Hong Kong stocks gain, Alibaba posts biggest surge since debuting in city, as traders bet on China recovery

  • Alibaba shoots up 10 per cent to HK$261.60
  • Shanghai Composite Index rises in eighth straight day of gains; one IPO shot up nearly 924 per cent while Kweichow Moutai tops 1,700 yuan

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The Hang Seng Index pulled out of a bear market on Monday. Pictured is the Exchange Square complex in Central Hong Kong. Photo: Sun Yeung
Martin ChoiandDeb Price

Hong Kong stocks shook off some jitters to close with a gain, overcoming concerns about a new wave of coronavirus infections in the city, while e-commerce giant Alibaba soared in its biggest one-day percentage gain since debuting in the city in November.

The Hang Seng Index climbed 0.3 per cent to 26,210.16 on Thursday, as traders bet on China’s economic recovery story.

The Shanghai Composite Index climbed 1.4 per cent, recovering from its own dose of early jitters, recording an eight-session winning streak.

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As exuberance sets in on the mainland, one debuting stock in China shot up nearly 924 per cent, underscoring concerns by some that stocks there may be overheated. China’s securities regulator stepped in to warn investors about illegally financed margin trading, which was blamed in large part for the 2015 meltdown that wiped off US$5 trillion in market capitalisation.

Alibaba shot up as much as 10.9 per cent to HK$263.80. It closed with a 10 per cent gain at HK$261.60.

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Jefferies reiterated its “buy” rating on Alibaba, reaffirming the e-commerce giant as a tier-one top pick and boosting the target price for shares to HK$300 from HK$294.

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