Hong Kong stocks halt 4-week rout after stunning rebound in Alibaba, JD.com as investors await China stimulus, Biden-Xi call

A stunning rebound in Chinese tech stocks helped end a four-week losing streak after Beijing’s verbal support for markets

Hang Seng Index members recouped US$468 billion over the past two days, more than they lost in the sell-off earlier this week

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Hong Kong stocks swing in one of the wildest rides in recent history. Photo: Reuters

Published: 10:33am, 18 Mar 2022Updated: 5:15pm, 18 Mar 2022

Hong Kong stocks capped a winning week after a stunning rebound in Chinese tech stocks as Beijing offered moral support for markets, spurring confidence. Investors look towards talks between the US and China leaders later Friday.

The Hang Seng Index advanced 4.3 per cent to 21,412.40 from a week earlier, snapping a rout over the preceding four weeks. The benchmark surged 17 per cent over Wednesday and Thursday from a decade-low, before retreating 0.4 per cent on Friday. The Shanghai Composite Index lost 2.2 per cent for the week.

The Tech Index slipped 1.9 per cent on Friday as traders locked up 20 per cent-plus rallies in bellwethers like Alibaba Group, JD.com and Tencent Holdings in midweek. Despite a pullback on Friday, the trio and Meituan chalked up 4 to 16 per cent gains from a week earlier.

The 66-member Hang Seng Index clawed back US$468 billion of market value over Wednesday and Thursday after a State Council committee chaired by economic tsar Liu He pledged to stabilise markets. The nation’s market regulator also chimed in amid concerns about the Ukraine conflict and US delisting pressures.

Investors are waiting for the outcome of a call between President Joe Biden and his Chinese counterpart Xi Jinping later Friday, said Mark Po, head of research at China Galaxy International Securities in Hong Kong.

“Issues that drove down the market earlier this week have not been resolved, such as the accounting concerns of Chinese ADRs and the Russia-Ukraine conflict,” he added.