Hong Kong stocks jump by most since July as Alibaba, tech index rebound while Chinese Estates soars on privatisation bid

Alibaba Group led Chinese Big Tech rally with a 5.6 per cent rebound after a 34 per cent slide to record low over the past three months

Chinese Estates surged 32 per cent, adding HK$1.77 billion in market value, as family of billionaire Joseph Lau offered to take developer private

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The ox statues at the Exchange Square in Central, Hong Kong. Stocks rally by the most in seven weeks on tech rebound. Photo: Xinhua

Published: 10:35am, 7 Oct 2021Updated: 4:37pm, 7 Oct 2021

Hong Kong stocks surged by the most in more than two months as Alibaba Group Holding paced a rebound in tech stocks from an all-time low. Chinese Estates Holdings soared on a take-private offer from its controlling shareholder.

The Hang Seng Index rose 3.1 per cent to 24,701.73 at the close of Thursday trading for its biggest one-day advance since July 29. The Hang Seng Tech Index soared 5.2 per cent, the most in seven weeks.

Alibaba, the owner of this newspaper, appreciated 7.3 per cent to HK$147.30 after sliding 34 per cent to a record-low in the past three months through Wednesday.

Local stocks climbed from a one-year low amid efforts to thaw US-China relations as senior security officials from both sides met in Zurich and The Wall Street Journal said President Joe Biden and his counterpart Xi Jinping will hold a virtual meeting before the end of the year.

“The key players in the main and technology index had retested the low seen in mid-August in the last few days” to distressed levels, said Will Shum, portfolio management director in Hong Kong at iFast Financial. A respite from negative news on the Chinese real estate sector also contributed to the rally, he added.

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