Best tech rally in two weeks lifts Hong Kong stocks as China injects liquidity while HSBC jumps on dividend outlook
- Hang Seng Index advanced as China’s policy easing seen aiding risk appetite, while June exports beat market consensus
- Alibaba, Tencent, Meituan led the biggest tech rebound in two weeks after recent mauling; Bank of England unshackled lenders on dividend payout
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.