Hong Kong stocks waver as developers gain while JD.com tumbles after Daiwa slashes target price

Stocks fluctuated amid reports the US is considering curbing exports of advanced chips to China

JD.com slumped after Daiwa cut its 12-month price target by 19 per cent following a call with the company on Tuesday

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Investors are banking on more stimulus from Beijing in the coming months to lift stock prices. Photo: Shutterstock

Published: 10:38am, 28 Jun 2023Updated: 5:00pm, 28 Jun 2023

Hong Kong stocks rose for a second day with investors banking on China to further pump-prime its economy this year. Gains were limited amid reports of potential US ban on chip shipment to China and a slump in JD.com after Daiwa slashed its price target by almost one-fifth.

The Hang Seng Index added 0.1 per cent to 19,172.05 at the close of Wednesday trading, after losing as much as 0.7 per cent. The benchmark index jumped 1.9 per cent on Tyuesday. The Tech index gained 0.9 per cent, while the Shanghai Composite Index also erased losses to close little changed.

Developer Longfor Group gained 1.8 per cent to HK$19.68 while Macau casino operators Sands China gained 1.5 per cent to HK$27.70 and peer Glaxy rallied 2 per cent to HK$51.60.

Limiting gains, Alibaba Group dropped 1.3 per cent to HK$84.35 while Tencent fell 1.5 per cent to HK$336.20. JD.com tumbled 1.2 per cent to HK$138 after Daiwa slashed its 12-m0nth price-target by 19 per cent, a day after a call with the company for business update.

China’s biggest chip maker SMIC fell 0.5 per cent to HK$20.60, after sliding as much as 1.5 per cent. Foreign media reports said the US was considering new curbs on exports of advanced artificial intelligence chips to China. Hua Hong Semiconductor slipped 1.4 per cent to HK$23.75.

The Hang Seng Index has risen about 5 per cent so far this month, on track to end a two-month losing streak. China cut some policy rates this month, stoking speculation about more easing measures to revive home sales and boost liquidity for property developers. The benchmark remained lower than the level on March 31.