Hong Kong stocks edge up, driven by corporate earnings but caution prevails as monetary policy moves eyed

Earnings announcements from sportswear company Li Ning and telecoms giant China Unicom triggers sharp gains in their shares

PBOC keeps benchmark rates steady as expected and investors await its next move after the central bank chief said China has ‘ample monetary policy space’

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People walk through the piazza in front of the headquarters of Hong Kong Exchanges and Clearing Limited (HKEX), Central. Photo: Elson LI

Published: 11:05am, 20 Mar 2024Updated: 5:02pm, 20 Mar 2024

Hong Kong stocks posted cautious gains after earnings announcements from sportswear company Li Ning and telecoms giant China Unicom showed operational improvements, but investors remain cautious awaiting the next move from China’s central bank which kept its benchmark lending rates unchanged at a monthly fixing.

The Hang Seng Index added 0.1 per cent to 16,543.07 at the closing of Wednesday trading, after retreating 1.2 per cent on Tuesday. The Tech Index gained 0.7 per cent, while the Shanghai Composite Index climbed 0.6 per cent.

Sportswear brand Li Ning surged 4.9 per cent to HK$21.30 after reporting a net profit of 3.2 billion (US$44 million), and its peer Anta Sports gained 2.3 per cent to HK$79.50.

“We saw stabilising inventory conditions, better than expected online retail sales in the fourth quarter, in-line full year 2023 earnings, significant amortisations in the second half and increased dividend and buy-backs,” said analysts at Jefferies after Li Ning’s earnings announcement.

China Unicom climbed 2.5 per cent to HK$5.71 after reporting a record income for last year, with HSBC analysts saying “the results presentation indicated broad progress in developing new business areas in IOT, private 5G networks, cloud services and infrastructure, and communications”.