Hong Kong stocks make upbeat start to week as traders look past weak earnings, await China economic figures
- Mainland funds bought HK$1.8 billion (US$230 million) worth of Hong Kong-listed stocks through the Stock Connect on Monday
- China’s trade, lending and money-supply figures for April are due on Tuesday and inflation data is expected on Thursday
The Hang Seng Index rose 1.2 per cent to 20,297.03 at the close of Monday trading, extending a winning streak to three days. The Tech Index added 0.5 per cent while the Shanghai Composite Index jumped 1.8 per cent.
NetEase jumped 0.9 per cent to HK$140.90, Baidu gained 1.1 per cent to HK$121.30 and Alibaba Group added 0.4 per cent to HK$81.95. BYD jumped 2.1 per cent to HK$240, while peer Geely Auto advanced 1.6 per cent to HK$9.81. China’s big three oil giants – PetroChina, Sinopec and CNOOC – jumped 4 to 5.9 per cent.
First-quarter corporate results so far have improved modestly compared with the previous quarter, with Chinese companies recording 1 per cent profit growth due to Covid-related disruptions and a high base in 2022, Goldman Sachs said in a note to clients on Sunday. The softer-than-expected results could set the stage for stronger earnings growth in the second quarter, with an ongoing focus on margin upside, the US bank said.
“Hong Kong stocks are relatively cheap now after the recent correction, and investors should take advantage of the market volatility to buy the dip,” Ping An Securities analyst Wei Wei wrote in a note on Sunday.
Mainland funds bought HK$1.8 billion (US$230 million) worth of Hong Kong-listed stocks through the Stock Connect on Monday, adding to the HK$1.6 billion inflow last week.
The city’s benchmark has dropped more than 10 per cent since peaking on January 27, as it has been struggling to find support amid China’s weak recovery and capital flight.