Hong Kong, Chinese stocks end week on winning note on outlook for fund inflows, Tencent slammed by heightened US scrutiny

Hang Seng Index narrows losses while Shanghai Composite Index completes first winning week in three

Tencent slammed by heightened US scrutiny, with investors still edgy on US-China tensions, says Gordon Tsui, head of securities association

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A trader in South Korea watches market movements in a week where regional stocks were troubled by the Federal Reserve’’s less-than-encouraging outlook for economic recovery. Photo: Handout

Published: 11:08am, 18 Sep 2020Updated: 5:10pm, 18 Sep 2020

Hong Kong stocks snapped a two-day losing streak as investors searched for bargains after a rout over the past three weeks. Signs of economic recovery lifted mainland Chinese stocks, with the market reversing a two-week slide.

The Hang Seng Index advanced 0.5 per cent to 24,455.41 on Friday, narrowing its losses this week to 0.2 per cent. Financial and healthcare stocks led the charge, while technology stocks within the Hang Seng Tech Index rose 2.7 per cent from a week earlier.

The Shanghai Composite Index rose 2.1 per cent to 3,338.09, hauling the gauge to a 2.4 per cent gain, the most since end-July. Northbound capital flow, from offshore to onshore, recorded a net inflow of 9.474 billion yuan, the highest level since July 7, according to Wind Information.

Both markets bucked weaker trends in US equities overnight amid lingering concerns about the impact of the coronavirus pandemic on the global economy.

The Hong Kong’ government earlier this week unveiled another round of stimulus packages to help local businesses overcome the crunch amid the city’s worst recession on record. Since April, the city’s financial markets have seen some HK$130 billion (US$16.8 billion) of net fund inflows, according to the monetary authority.

“Capital has flowed into the Hong Kong market, supporting stocks,” said Gordon Tsui, chairman of Hantec Pacific and president of Hong Kong Securities Association. “On the other hand, mainland-based new economy stocks, such as Ant Group, are lining up for listings, helping market sentiment.”

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