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Hong Kong stocks advance as oil, property firms enjoy spillover from tech rebound while Evergrande soars
- Oil and property stocks jumped in a spillover rally from tech sector rebound
- China Evergrande surged again after confirming talks about asset sale plans to boost its liquidity
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Hong Kong stocks rose as oil companies and property developers benefited from a rotation play away from green-energy and technology stocks. China Evergrande group added to a US$3.5 billion rally after the developer confirmed it was planning to sell assets to boost its liquidity.
The Hang Seng Index gained 0.2 per cent to 26,660.16 for a third day of advance. The Shanghai Composite added 0.1 per cent. The Hang Seng Tech Index slipped 0.1 per cent after surging by 2.5 per cent on Tuesday.
PetroChina and Sinopec rose by at least 2 per cent as crude oil prices rebounded from a three-week low and held steady at US$68 a barrel. China Overseas Land and Investment rose 8.9 per cent to HK$18.62, while China Resources Land gained 7.3 per cent to HK$30.15.
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“Reduced concern on Evergrande’s debt issue [has impacted] the overall sector” and led to a surge in property stocks, said Jefferies analyst Stephen Cheung in a report. The firm sees short-term buying opportunities, though there are doubts the uptrend can sustain, he added.
China Evergrande jumped 7.8 per cent to HK$6.33, while China Evergrande New Energy Vehicle gained 4.7 per cent to HK$13.82, while Evergrande Property Services surged 9 per cent to HK$7.30.
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