Hong Kong stocks gain as Xi-Biden meeting seen easing geopolitical tensions while e-commerce sales lift Alibaba, JD.com

Goldman downgraded Chinese stocks in offshore markets, preferring onshore peers that are less sensitive to geopolitical and liquidity risks

The first meeting in about a year between President Xi Jinping and his counterpart Joe Biden may yet inject optimism

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People stand on the street beneath a large screen showing the latest market and economic data, in Shanghai in October 2023. Photo: EPA-EFE

Published: 10:38am, 13 Nov 2023Updated: 4:40pm, 13 Nov 2023

Hong Kong stocks jumped on optimism the fitrst meeting in a year between President Xi Jinping and his counterpart Joe Biden will help ease geopolitical tensions. Alibaba Group and JD.com advanced after reporting strong “Singles’ Day” e-commerce sales.

The Hang Seng Index rose 1.3 per cent to 17,426.21 on Monday, rebounding from a drop of as much as 0.5 per cent. The Tech Index rallied 2.3 per cent, while the Shanghai Composite Index added 0.3 per cent.

Tencent climbed 2.8 per cent to HK$311.20, while NetEase advanced 2.4 per cent to HK$179.40 and Baidu surged 3.5 per cent to HK$104.80. Alibaba added 1.4 per cent to HK$80.70 and JD.com gained 2.1 per cent to HK$101.10, after reporting sales growth during this year’s weeks-long shopping festival.

Xi and Biden are due to meet on Wednesday on the sidelines of the annual Apec meetings in San Francisco, with a focus on managing the relationship peacefully, analysts said.

Tensions in China-US relations “are expected to continue easing and that will help boost foreign investors’ confidence,” Ping An Securities analyst Wei Wei said in a note on Monday. The recent shift in overseas liquidity will also create a favourable opportunity in Hong Kong stocks, he added.

The Hang Seng Index has slumped about 13 per cent this year, the worst among major global market, amid China’s uneven economic recovery and persistent geopolitical risks. That has erased over US$534 billion from the city’s broader market, according to Bloomberg data.