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An investor monitors stock information on an electronic screen at a brokerage house in Taiyuan, Shanxi province, Photo: Reuters
BusinessMarkets

Hong Kong stocks complete three-week rally as tech firms add to US$205 billion rebound while Xi-Biden talk boosts sentiment

  • Hang Seng Index gained 1.9 per cent to complete a third week of advance amid buoyant demand for Chinese tech stocks
  • Xi-Biden talk boosted sentiment as authorities launched Wealth Management Connect scheme
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Iris Ouyang
Iris Ouyang
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Hong Kong stocks advanced as tech companies rebounded, leading the market to a three-week rally. Stocks in mainland China reached the highest level in six years as President Xi Jinping and President Joe Biden spoke on Friday amid frayed ties.

The Hang Seng Index rose 1.9 per cent to 26,205.91, taking the three-week rally to 5.5 per cent. The Shanghai Composite Index added 0.3 per cent to 3,703.11, reaching a level not seen since August 2015.

The Hang Seng Tech Index rose 2.9 per cent, clawing back more than half of the decline on Thursday, as online game developers rebounded from deep losses on Thursday. Meituan and Alibaba Group Holding, the owner of this newspaper, added 4.3 per cent.

Tencent Holdings, the largest online game developer in China, jumped 2.1 per cent, recovering part of the 8.5 per cent slump on Thursday as the firm spent HK$103 million buying back shares on Thursday. NetEase jumped 3.1 per cent. Xiaomi increased 2.1 per cent after spending HK$98.2 million on stock buyback.

The 30-member tech gauge has regained HK$1.6 trillion (US$205.9 billion) in market value through September 9, after rebounding from an August 20 low, according to Bloomberg data.

Xi and Biden said in a phone call on Friday to manage the US-China rivalry. Xi also called for efforts to restores tense relations and that both nations would step up dialogues at various levels.

After the market closed, Hong Kong authorities unveiled plans for deeper financial linkages with mainland China by unveiling the Wealth Management Connect scheme, opening a potential US$46.5 billion two-way investment flows within the Greater Bay Area.

Helens International surged 23 per cent to HK$24.30 in its Hong Kong trading debut. Kunshan GuoLi Electronic Technology soared 516 per cent to 74.20 yuan in Shanghai.

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