Hong Kong stocks rise by most in 3 weeks as markets bet on China meeting catalyst, technicals support bounce

President Xi chaired the Politburo meeting last Friday, which will be followed by the Central Economic Work Conference this week

The Hang Seng Index’s technical reading suggests the market sell-off this week towards a 14-month low is nearing an end

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People walking outside the Exchange Square in Central, Hong Kong with tickers showing stock prices on December 7, 2023. Photo: Li Jiaxing

Published: 10:36am, 12 Dec 2023Updated: 4:55pm, 12 Dec 2023

Hong Kong stocks rose by the most in three weeks on optimism a key political and economic meeting in Beijing this week could deliver some boost. Technical indicators suggest the market sell-off this month is almost overdone.

The Hang Seng Index closed 1.1 per cent higher at 16,374.50 on Tuesday, halting a three-day slide that took the benchmark to a 14-month low. The Tech Index gained 1.7 per cent while the Shanghai Composite Index added 0.4 per cent.

Sportswear maker Li Ning rose 4.4 per cent to HK$19.10, recouping some of the 14 per cent slump on Monday. Tencent rallied 1.4 per cent to HK$311.40, Baidu climbed 2.1 per cent to HK$110.50 and JD.com added 2.1 per cent to HK$100.30. Alibaba Group climbed 1.9 per cent to HK$70.10, after trimming its stake in logistics provider GogoX, whose stock tumbled 8.3 per cent to HK$0.55.

New World Development gained 1.6 per cent to HK$11.26, after the billionaire Cheng family bought 700,000 shares in the Hong Kong developer on December 11, according to an exchange filing. The stock has fallen 50 per cent this year.

Tuesday’s gain helped to narrow the Hang Seng Index’s decline this month to 3.9 per cent. The index’s 14-day relative strength technical indicator fell to 31, according to Bloomberg data. A 30-point reading typically means a market reversal is imminent.