Hong Kong stocks rise on China trade data surprise as investors keep flocking to tech companies
- Hang Seng Index gained for a second day as China’s exports rose more than expected in August after a series of weak report cards in July
- Meituan and Tencent still favoured by investors seeking to pick up bargains after a major sell-off in July
The Hang Seng Index rose 0.7 per cent to 26,353.63 to reach the highest level since August 13. The Shanghai Composite Index gained 1.5 per cent to 3,676.59, the highest level since February 19.
Meituan climbed 4 per cent to HK$257.40, bringing its rebound to 33 per cent from a recent low on August 20. Tencent added 2.1 per cent to HK$515.50 to cap a 22 per cent rebound over the same period, while Alibaba Group Holding, the owner of this newspaper, appreciated 1.2 per cent to HK$170.
“Investor sentiment has significantly improved especially in tech stocks,” said Gary Ching, Hong Kong-based chief analyst for macroeconomic and strategy at Guosen Securities. “It will need more time to see how long it will sustain.”
The Hang Seng Index may trade between 25,000 and 26,600 this month as regulatory headwinds subsides, Ching added.
China’s exports surged 25.6 per cent in US dollar terms in August from a year ago, the customs administration reported on Tuesday, while imports jumped 33.1 per cent. They exceeded consensus forecasts for 17.3 per cent and 26.9 per cent, respectively. Other recent government reports last month had indicated growth in the world’s second-largest economy lost significant momentum so far this quarter.
Logistics and transport stocks benefited from the trade news. Chang Jiang Shipping Group Phoenix surged by 10 per cent in mainland. Sinotrans jumped 4.9 per cent in Hong Kong.
Two stocks began trading for the first time in mainland China. Zhuzhou CRRC Times Electric surged 83.2 per cent to 57.50 yuan while Sicher Elevator soared 277.1 per cent to 14.82 yuan.
