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Hong Kong stock market
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Hong Kong stocks jump by most in 2 months with Alibaba, HSBC gains amid China data boost, while New World surges on asset sale

  • China’s services sector expanded in October, compensating for surprise drop in factory activity
  • New World Development surged after shareholders approved the sale of its stake in NWS Holdings for cash to reduce its debt load

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An electronic billboard displaying the Hang Seng Index and stocks outside the Exchange Square in Central in August 2023. Photo: Yik Yeung-man
Jiaxing Li
Hong Kong stocks completed a second week of advance after a private report showed services sector in mainland China expanded last month, compensating for a slide in factory activity. New World Development surged after shareholders approved an asset sale to pare debt.
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The Hang Seng Index jumped 2.5 per cent to 17,664.12 at the closing of Friday trading, the biggest gain in two months. The Tech Index soared 3.3 per cent while the Shanghai Composite Index added 0.7 per cent.

Tencent advanced 4.9 per cent to HK$302.60, Alibaba Group gained 2.9 per cent to HK$82.85 and e-commerce peer JD.com jumped 3.7 per cent to HK$103.10. Sun Hung Kai Properties rallied 2.7 per cent to HK$84.80 and Henderson Land advanced 3.3 per cent to HK$22.20, leading gains among local developers.

This week’s 1.5 per cent rally helped stem successive monthly losses since July, allowing the benchmark index to rebound from an 11-month low. Policy support, in the form of property easing measures and interest-rate pause, boosted confidence among stock investors. Mainland funds bought HK$8.5 billion (US$1.1 billion) of Hong Kong-listed stocks via the Stock Connect this week.

“Sentiment is getting better this week as negative factors, such as Fed uncertainty and geopolitical tensions, have started to subside,” said Kenny Wen, head of investment strategy at KGI Securities. China’s weak recovery and property crisis could undermine the market rebound, he added.

China’s services activity expanded last month, with the Caixin China PMI Services Index rising to 50.4 in October from 50.2 in September. A reading above 50 signals an expansion. Reports earlier this week showed Chinese manufacturing surprisingly contracted last month.

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Meanwhile, New World Development surged 3.9 per cent to HK$15.46 after shareholders approved the sale of its 60.9 per cent stake in NWS Holdings to the Cheng family that controls both entities. The move would allow the developer to raise as much as US$2.78 billion cash to trim its debt burden.
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