Hong Kong stocks add to best rally since April as beaten-down tech regains favour

Hang Seng Index rose for a second day as tech stocks regained favour while investors cast aside concerns about policy tightening

Meituan and Alibaba Health, JD Health led gainers while Xinyi Solar was coveted as Biden looks to sanction rivals with Xinjiang links

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The Hang Seng Index chart on display outside a brokerage in Mong Kok, Hong Kong. Photo: Sam Tsang

Published: 10:45am, 24 Jun 2021Updated: 5:12pm, 24 Jun 2021

Hong Kong stocks rose for a second day, adding to the biggest rally in almost three months, as investors cast aside recent worries about faster inflation and higher interest rates to pick up beaten-down tech companies.

The Hang Seng Index climbed 0.2 per cent to 28,882.46 at the close. The gauge surged 1.8 per cent on Wednesday, the most since April 1. China’s Shanghai Composite Index rose less than 0.1 per cent.

Xinyi Solar jumped 3.1 per cent, making it the best benchmark performer, as traders bet it will benefit from the Biden administration’s plans to sanction rival solar products made in the Xinjiang autonomous region.

Meituan and Alibaba Health Information climbed at least 2.1 per cent, while JD Health and Bilibili added more than 2.6 per cent, helping the Tech Index to a second day of advance.

Other major markets in Asia were mostly steady, as traders digested comments this week by Federal Reserve officials on the path to policy normalisation. US tech stocks traded on the Nasdaq rose to a record in overnight trading, fanned by a rally in electric car maker Tesla. A government report showed that manufacturing in the US expanded in June at the fastest pace in records dating back to 2007.

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