Hong Kong stocks advance as Chinese tech companies gain buying support from some big funds

Hang Seng Index climbed 0.5 per cent as tech companies jumped on signs some big funds including Ark ETFs and BlackRock are picking up values

Fed chairman Powell said the central bank was in no hurry to raise borrowing costs to protect the US economic recovery

Reading Time:2 minutes

Meituan, China's biggest food delivery platform operator, reports quarterly earnings on Monday. Some funds are seen nibbling in Chinese tech stocks again. Photo: AFP

Published: 10:55am, 30 Aug 2021Updated: 4:33pm, 30 Aug 2021

Hong Kong stocks advanced amid signs some investors are buying tech stocks again and traders looked for stronger corporate earnings to support risk appetite. The Federal Reserve said the US central bank is not in a hurry to raise interest rates.

The Hang Seng Index climbed 0.5 per cent to 25,539.54 at the close while the Shanghai Composite Index also added 0.2 per cent. The Hang Seng Tech Index jumped 1.1 per cent as funds including Cathie Wood’s Ark ETF vehicles and BlackRock appeared to have added Chinese tech stocks in recent weeks before the gauge surged by the most in seven months last week.

Sunny Optical and AAC Technologies rallied more than 2 per cent while Kuaishou Technology and Ping An Healthcare surged more than 5 per cent. Alibaba Group Holding, the owner of this newspaper, rose 1.5 per cent to HK$158.20.

Some 51 members of the Hang Seng benchmark gauge have published their earnings so far in the current reporting season, according to Bloomberg data, beating analysts’ projections by an average 2.8 per cent.

“The risk to stock valuations and prices has subsided to some extent,” said Wang Yitang, an analyst at Huaxi Securities. “But Hong Kong stocks are still seeking the bottom and the broader sentiment has yet to fully recover.”