Tech rally sends Hang Seng to best gain this month as traders weigh Covid-19 fallout in China
- Hang Seng Index rose by the most this month as traders picked up beaten-down Chinese technology stocks
- Video game maker Krafton slumped in Seoul as association with backer Tencent seen hurting stock debut amid scrutiny on industry
The Hang Seng Index rose 1.2 per cent to 26,605.62 at the close of trading, the most since July 29. The Hang Seng Tech Index climbed 2.5 per cent, as Meituan rallied 8.4 per cent to HK$239 and Tencent gained 5.3 per cent to HK$486.20. The Shanghai Composite surged 1 per cent.
Investors in Hong Kong and China have turned more constructive towards the internet sector following the recent sell-off, Nomura analysts led by Shi Jialong wrote in a note to clients on Monday, saying most of the internet leaders should emerge stronger from the regulatory storm.
“In our view, the internet sector as a whole may trade rangebound in the near term before likely seeing a consistent rally in the fourth quarter if the regulatory environment stabilises by then,” according to the report.
China Evergrande soared 7.3 per cent to HK$5.87 per cent, while its new-energy vehicle unit rose 8 per cent to HK$13.20 and property management arm surged 20.5 per cent to HK$6.70. The group was holding talks with state-owned and private companies to sell its assets for cash, according to Reuters.