Hang Seng Index reclaims 30,000 as Tencent approaches US$1 trillion in record sprint amid China growth optimism
- Hang Seng Index advanced 2.4 per cent to breach the 30,000 level again as tech stocks underpinned rally to May 2019 high
- Tencent and Meituan sprinted to record highs, with the former just 5.5 per cent shy of breaking into the exclusive US$1 trillion club
The Hang Seng Index rose 2.4 per cent to 30,159.01 on Monday. The index has appreciated 10.8 per cent this year to the highest level since May 2019. The Shanghai Composite Index gained 0.5 per cent to 3,624.24, the highest since December 2015.
Tencent paced index members, surging 10.9 per cent to HK$766.50. The WeChat operator has now sprinted to a 35.9 per cent gain this month alone, pushing its capitalisation to US$948.7 billion. It surpassed electric-car maker Tesla in value on January 15, and is now within 5.5 per cent of breaking into the five-member exclusive club of US$1 trillion companies, according to Bloomberg data.
“The Hang Seng Index still has some room to grow as it still lags a lot behind A shares, so it’s attractive to investors,” said Chi-man Wong, head of research at China Galaxy International Securities in Hong Kong. “The market may have some fluctuations ahead as it has risen very fast.”