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
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.
“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.”
“We expect the worst for growth in this downturn to take place in spring 2022, when the pain threshold will also likely be reached,” Nomura strategists said in their outlook report this month. “We do not view inflation as a barrier to Beijing launching more supportive policy easing and stimulus measures in 2022.”
“China’s policy cycle is that of outright easing and will be the key driver to recovery,” Morgan Stanley said in a report published on Monday. Officials have affirmed they will continue to take action to stem the economic downturn, the report said.
Two firms started trading for the first time on the mainland. Circuit chip manufacturer Triductor Technology (Suzhou) soared 32 per cent, while materials producer SICC Co rose 3.3 per cent.
Major Asia-Pacific markets advanced, taking cues from rebounds in US markets. Shares in Japan rose 1.9 per cent, while Australian and South Korean equities climbed by 0.7 to 1.5 per cent.