Hong Kong stocks rally as Alibaba Health, Kuaishou push tech benchmark to best run in a month while HSBC jumps
- Tech benchmark has risen by 5.5 per cent in a three-day rally as investors picked up values in market trading near an all-time low
- China Life Insurance tumbled as chairman is investigated by China’s ant-corruption agency, while Modern Land slumped on trading resumption following debt defaults
The Hang Seng Index rose 1.1 per cent to 23,23,746.54 at the close of Monday trading. The Tech Index jumped 2.2 per cent while China’s Shanghai Composite Index gained 0.4 per cent.
Alibaba Health Information and Kuaishou Technology both surged by more than 10 per cent. Tencent and NetEase added more than 2.3 per cent while Meituan gained 1.3 per cent, among the biggest winners as tech stocks accumulated 5.5 per cent gain over three days from an all-time low set on January 5.
“Last year’s popular sectors suffered major corrections in the first week of the new year,” Ping An Securities (HK) said in a note on Monday. “But as markets bottom, they present opportunities for investors, given that the Chinese authorities have highlighted they would prioritise economic stability going forward.”
A late rally in tech stocks lifted the Hang Seng Index to a 0.4 per cent gain last week. That made it a sixth consecutive year in which the benchmark had a winning start to a new year.
HSBC jumped 3.2 per cent after earlier hitting the highest level since March 2021, tracking the stock’s rally in London on late Friday. Earnings are expected to benefit from wider lending margins after the Bank of England’s surprise rate increase last month.
Elsewhere, Shimao Group soared 19.2 per cent after reports emerged over the weekend that the developer has put on sale all of its real estate projects to raise cash.
Major Asian markets retreated on Monday amid overriding concerns about Covid-19 spread and higher borrowing costs. South Korean equities lost 1 per cent, while the Australian gauge slipped 0.1 per cent.