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Hong Kong stocks log winning week as HSBC hits near 15-month high on business revamp while JD Logistics’ debut fizzles out

  • Investors embraced HSBC’s plan to exit US retail banking to focus on rich clients in Asia as stock reached highest level since early March 2020
  • JD Logistics kicked off debut with a 14 per cent premium, in stark contrast to recent flops at Baidu, Bilibili, only to fizzle out at end of trading

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An investor checks stock prices on his mobile phone at a brokerage house in Beijing in June 2018. Photo: Simon Song
Martin Choi
Hong Kong stocks advanced for a second week as banking giant HSBC rose to the highest level in almost 15 months after a major business reorganisation. JD Logistics’ first day of trading ended with a limp as its premium eroded.

The Hang Seng Index rose 2.3 per cent to 29,124.41 from a week ago, helping the gauge towards its biggest monthly gain since February. The Shanghai Composite slipped 0.2 per cent to 3,600.78 at the close of Friday’s trading, trimming the breakout week to 3.3 per cent.

HSBC rose 3.8 per cent to HK$50.80, the highest level since March 5 last year. The bank will hold a shareholders’ meeting later Friday, and earlier this week agreed to sell its US retail banking business to focus more resources on wealth management business in Asia.
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CK Asset jumped 6 per cent to HK$52.80, reaching its highest level since January 24, 2020. The company said its share buy-back was oversubscribed at 108 per cent after the offer was expanded to allow its key shareholder to maintain control. The firm will pay HK$19.38 billion for 380 million shares, pricing each share at HK$51.

Oil has climbed to a more than two-year peak, according to Bloomberg data. Sinopec rose 1.2 per cent to HK$4.21, while PetroChina added 0.6 per cent to HK$3.17. CNOOC gained 0.5 per cent HK$8.50.

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Mainland investors ploughed HK$9.5 trillion (US$1.24 trillion) of funds into Hong Kong-listed stocks this week through Thursday, after scooping HK$20.3 trillion last week via the southbound Connect scheme, according to stock exchange data. Foreign investors bought 47.3 trillion yuan worth of A shares this week, up from 475.2 billion yuan last week.

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