Hong Kong stocks lifted by tech sector ahead of JD.com results, as investors focus on earnings after China stimulus disappointment

E-commerce giant JD.com’s posts early gains ahead of its earnings announcement amid expectations it probably recorded a sharply higher profit last quarter

Investors eye ongoing China’s annual parliamentary meeting with policymakers from NDRC, MoF, PBOC and CSRC due to speak at a key press conference this afternoon

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The flags of Hong Kong, China and the HKEX on February 29, 2024. Photo: Bloomberg

Published: 10:53am, 6 Mar 2024Updated: 5:01pm, 6 Mar 2024

Hong Kong stocks rose, led by the tech sector which was lifted by e-commerce giant JD.com’s sharp gains ahead of its results announcement, as the focus shifts to corporate earnings in China after foreign fund outflows showed signs of slowing.

The Hang Seng Index jumped 1.7 per cent to close at 16,438.09 on Wednesday, rebounding from the previous day’s 2.6 per cent fall. The Tech Index gained 2.7 per cent while the Shanghai Composite Index lost 0.3 per cent.

JD.com jumped 7.8 per cent to HK$89.20, ahead of its earnings release later today and the consensus is that it probably registered a 51 per cent profit rise last quarter to US$643 million. Rival Alibaba added 3.1 per cent to HK$71.85, Tencent gained 2.4 per cent to HK$274.60 while Meituan added 2.7 per cent to HK$88.70.

“Sentiment is slowly improving as earnings surprises are now, in contrast to 2023, rewarded generously,” Herald van der Linde, head of Asian equity strategy at HSBC, said in a note. China’s earnings season is key, possibly more so than the “two sessions” political meetings which often focus on the big picture and lack details that stock analysts look for, he added.

In another boost for the mood, policymakers from National Development and Reform Commission, Ministry of Finance, People’s Bank of China and China Securities Regulatory Commission pledged more efforts stabilise the economy in a rare joint press conference.

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