Hong Kong stocks jump as Alibaba, Meituan rebound from biggest tech sell-off in seven weeks
- The Hang Seng Index rose by almost 1 per cent as investors bought the dip after the biggest sell-off in technology giants since mid-November
- Asian stocks rallied as Nikkei 225 reached a 29-year high, boosted by approval to US$2.3 trillion stimulus package in the US
The Hang Seng Index closed almost 1 per cent higher at 26,568.49 for its biggest rally since December 16. A gauge tracking 31 of the bourse’s biggest technology companies jumped 2.6 per cent. The Shanghai Composite Index declined 0.5 per cent to 3,379.04, after fluctuating between gains and losses earlier.
Investors dumped Alibaba, the owner of this newspaper, and some of its listed affiliates and industry peers on Monday after Chinese regulators tightened its oversight and controls on internet-platform operators and stepped up efforts to tackle so-called “disorderly capital expansion” in the industry.
“The declines were too big for the past two days, traders have bought the dips on expectation that they will rebound,” said Castor Pang, head of research at investment services firm Core Pacific-Yamaichi. “Concerns [over Beijing’s sweeping antitrust campaign] have not been reduced.”
On the mainland, companies on the forefront of pushing fifth-generation technology gained. Xiao Yaqing, head of the Ministry of Industry and Information Technology, said China will advance the 5G network construction and application next year and set up more than 600,000 5G stations.
New stock listings were mixed. Automated electric equipment producer Suzhou Veichi Electric soared by 86.2 per cent to 20.02 yuan in Shanghai. In Hong Kong, China Gas Industry Investment surged by 18.2 per cent to HK$1.62, while Huisen Household International dropped 1.7 per cent to HK$1.80.
“The rebound of tech stocks and the US approval of stimulus package have a positive impact on the market,” said Gordon Tsui, chairman of Hantec Pacific. The HSI will not have much change in the final two trading days of this year, he said, adding it will fluctuate between 26,500 and 26,800.
Elsewhere, Asian stocks rallied, tracking a record close in US equities overnight after President Donald Trump signed a US$2.3 trillion stimulus package. Japanese stock closed 2.7 per cent higher to a level not seen since January 4, 1991. Stocks in Singapore, Australia and South Korea rose by more than 0.3 per cent.