Hong Kong stocks rose as technology companies staged the biggest rebound in two weeks after a government report showed China’s export growth exceeded market expectations while US equities reached record highs. HSBC jumped on dividend speculation. The Hang Seng Index climbed 1.6 per cent to 27,963.41 at the close, adding to a 0.6 per cent advance on Monday after the People’s Bank of China cut the reserve requirement ratio (RRR) for banks by 50 basis points. The Shanghai Composite Index gained 0.5 per cent. The Hang Seng Tech Index jumped 1.9 per cent, the most since June 25 to recoup some of the US$155 billion sell-off last week. Social media giant Tencent Holdings surged 3.9 per cent to HK$555.50 after winning approval from the state antitrust regulator to acquire search engine operator Sogou. Meituan jumped 3.4 per cent to HK$295, while Alibaba Group Holding added 4 per cent to HK$205.20 and Geely Auto surged 5.2 per cent to HK$25.40. HSBC climbed 2.6 per cent to HK$45.05. Sentiment was strong across the Asia-Pacific markets on Tuesday, with almost all the region’s major benchmarks posting gains following record closes for US stocks amid expectations about resilient earnings. “We expect Chinese regulators will try to find a balance between catching up with regulations and avoiding overly tight restrictions that could suffocate the country’s tech sector,” Aleksey Mironenko, managing director in Hong Kong at wealth management firm The Capital Company, said in an email report. Gains were also supported by data on Tuesday showing China’s exports grew by 32.2 per cent in the US dollar term in June versus 27.9 per cent in May, exceeding the market consensus for a 22.9 per cent gain, the customs authority said. Growth will probably cool in the second half because of the global pandemic, an official added. China’s RRR cut may temper pessimism about a slowdown, with the nation’s second-quarter economic growth report due for release on Thursday. The RRR cut will unleash more than 1 trillion yuan (US$155 billion) into the system to alleviate a liquidity crunch and underpin the nation’s economic recovery. Policymakers are expected to keep a mixture of “tight credit, loose monetary policy and proactive fiscal policy” in the medium term to aid the economy, analysts at China International Capital Corp said in a July 10 report. “The increased expectation about loosening monetary policy will boost risk appetite, particularly for technology stocks that are more sensitive to the changes,” said Lin Fan, an analyst at Huajin Securities. HSBC, the biggest lender in the city, snapped a three-day decline to recover from a five-month low. The Bank of England removed pandemic-related curbs on how much UK lenders can pay out as dividends , saying they have enough capital to withstand the current crisis. Traders are also preparing for corporate earnings reports later this month, which will offer clues on the strength of second-quarter performance amid global inflationary pressures and pandemic. Macau casino operator Sands China will kick off the reporting season next week. Two companies started trading in Hong Kong. Brii Biosciences, a Chinese medicine maker, rose 3.2 per cent from its initial public offering price to HK$22.95 in debut. South China Vocational Education Group, a vocational tutoring firm, slid 17 per cent to HK$1.32.