Hong Kong stocks log winning week as Kuaishou steals limelight with windfall for IPO investors

Hang Seng Index completed a 3.6 per cent win for the week, recouping nearly all of the 1,164 points loss last week

Kuaishou jumped to as high as HK$345 following the hottest reception to the city’s retail offering, before ending debut at HK$300

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A mascot in the courtyard at the Kuaishou Technology headquarters in Beijing. Photo: Bloomberg

Published: 10:09am, 5 Feb 2021Updated: 4:50pm, 5 Feb 2021

Hong Kong stocks were headed for a winning week as Kuaishou surged as much as 200 per cent after attracting a record level of subscription from retail investors in the city’s market history.

The Hang Seng Index advanced 0.6 per cent to 29,295.81 on Friday, topping the advance this week to 3.6 per cent. The Shanghai Composite Index dropped 0.2 per cent to 3,496.33 for a 0.4 per cent gain in week.

Casino operators led the gainers in Hong Kong. Galaxy Entertainment jumped 6.6 per cent to HK$66.90 and Sands China added 3.5 per cent to HK$32.85.

Kuaishou Technology, the Chinese short-video app operator, jumped by as much as 200 per cent to HK$345, compared with its IPO price of HK$115, and traded at HK$300 at the close under the 1024 stock ticker. That gives the unprofitable firm at market value of about HK$1.23 trillion (US$160 billion).

Tencent Holdings was unchanged at HK$735.50 after climbed by as much as 2.8 per cent. Its 17.7 per cent stake in Kuaishou’s post-IPO capital base before over-allotment is worth US$28.4 billion.

Kuaishou raised about HK$41.3 billion of net proceeds, the most by an internet-based company since car-hailing firm Uber Technologies in May 2019. The stock performed in line with the prices quoted by local brokerages in pre-trading on Thursday.

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