Tech stocks surge 5 per cent in Hong Kong as Alibaba, JD.com lead charge while CNOOC surprises market with big dividend plan

Ten of the biggest tech winners advance by more than 6 per cent as investors rush back into market while CNOOC surges on dividend payout plan

Consumer inflation and factory-gate prices rose in December at slower than economists’ forecast, the statistic bureau reports on Wednesday

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Monitors displaying the stock index prices in major Asian markets. Photo: Reuters

Published: 10:43am, 12 Jan 2022Updated: 4:39pm, 12 Jan 2022

Hong Kong stocks rose to the highest level in more than six weeks following the best gain in Chinese technology companies since October. A government report showed inflation in December was slower than expected, creating room for further policy easing.

The Hang Seng Index rose 2.8 per cent to 24,402.17 at the close of Wednesday trading, a level not seen since November 25. The Tech Index soared 5 per cent, the biggest advance in three months. China’s Shanghai Composite Index added 0.8 per cent.

Alibaba, the owner of this newspaper, climbed 5.9 per cent while its health unit gained 3.7 per cent. JD.com jumped 11 per cent while Meituan climbed 9.1 per cent and NetEase strengthened 6.8 per cent. The rally has helped recouped US$137 billion of tech value since late Thursday.

“The valuation of tech stocks like JD.com is not demanding,” said Stanley Chan, research director at Emperor Capital. “When market sentiment stabilises, funds that are underweight on such stocks will accumulate more.”

Producer prices in China rose 10.3 per cent in December from a year earlier, compared to 12.9 per cent in November, the statistics bureau said on Wednesday. Consumer prices rose 1.5 per cent, versus 2.3 per cent in November. Both were slower than consensus among economists.

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