BYD, Meituan fuel tech surge in Hong Kong as Beijing rolls back Covid-19 curbs, HKEX unrattled by LME lawsuit
- Hang Seng Index closed at a two-month high after China rolled back some of the Covid-19 restrictions in the capital
- Bourse operator HKEX shrugged off early setback after metal traders filed a lawsuit for related to LME’s decision in March to cancel futures contracts on nickel
The Hang Seng Index climbed 2.7 per cent to 21,653.90 at the close of Monday trading, the highest level since April 8. The Tech Index jumped 4.6 per cent, the most since May 20, while the Shanghai Composite Index added 1.2 per cent.
Carmaker BYD surged 5.7 per cent to HK$300.60 while short-video platform operator Kuaishou rallied 5.1 per cent to HK$84. Alibaba Group Holdings jumped 5 per cent to HK$96.95. Food-delivery platform operator Meituan surged 9.9 per cent to HK$198.10 after revenue last quarter beat estimates while net loss was smaller than expected at 5.7 billion yuan (US$856.8 million).
“China is now putting in place measures as promised to stabilise growth and the market will continue to trend up” this month, said Yang Chao, an analyst at China Galaxy Securities. “Full resumption of production is key to a sustained rebound on stocks and corporate earnings.”
Elsewhere, all five debutants on the mainland’s stock exchanges rallied. Sinosteel Luonai Materials Technology, which makes refractory materials, jumped 151 per cent to 12.68 yuan in Shanghai. Four others logged 44 per cent to 117 per cent gains.