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An electronic screen displays the Hang Seng Index and other stoxk benchmarks in Central, Hong Kong. Photo: Bloomberg

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
Stocks in Hong Kong and mainland China rose after Beijing rolled back some of its Covid-19 restrictions while investors turned more upbeat on the market. Hong Kong Exchanges and Clearing was unrattled after metal traders sued its UK unit.

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).

Beijing reopened public transport service in the capital from Monday and let entertainment facilities resume business in most districts, the local government said. It will also allow restaurants to seat diners and companies to return workers to offices. China’s services industry improved in May, a private report showed.

“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.”

Investors including Amundi, Europe’s biggest money manager, see room to become more constructive on Chinese stocks because concerns about economic growth and earnings were already baked into beaten-down stock prices.


Residents in Beijing satellite city protest against Covid rules limiting acess to Chinese capital

Residents in Beijing satellite city protest against Covid rules limiting acess to Chinese capital
Better news flow also aided sentiment, with the Biden administration considering lifting some import tariffs on Chinese goods to rein in inflation at a four-decade high. The Caixin PMI Services index rose to 41.4 in May from 36.2 in April, though still below the expansion threshold of 50.
Hong Kong Exchanges and Clearing added 1.6 per cent to HK$347.60, reversing an earlier drop of as much as 1.2 per cent. Its UK subsidiary that operates the London Metal Exchange faces a US$456 million claim by Elliott Associates and Elliott Internationaal over its decision in March to cancel futures contracts on nickel.

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.