Advertisement
Hong Kong stock market
BusinessMarkets

Hong Kong stocks jump after China industrial profits rise, eyes on Politburo meeting

  • Total profits of industrial enterprises rose 3.5 per cent year on year in the first half, the National Bureau of Statistics (NBS) said on Saturday

2-MIN READ2-MIN
Hong Kong Stock Exchange in Central. Photo: Jonathan Wong
Jiaxing Li
Hong Kong stocks jumped by the most in two weeks, buoyed by upbeat industrial profits and in anticipation of more supportive policies from the coming Politburo meeting.

The Hang Seng Index gained 1.3 per cent to 17,238.34 at the close of trade on Monday, the biggest advance since July 12. The Hang Seng Tech Index added 0.7 per cent and the Shanghai Composite Index gained less than 0.1 per cent.

E-commerce company Alibaba rallied 3.8 per cent to HK$75.90, smartphone maker Xiaomi jumped 1.8 per cent to HK$16.66 and search engine operator Baidu 1.1 per cent to HK$86.50. Insurer AIA advanced 1.8 per cent to HK$52.65 and HSBC gained 1.7 per cent to HK$67.35, leading gains in the financial sector.

Advertisement
Before today’s gains, the city’s benchmark index had retreated 3.9 per cent in July, heading for its biggest monthly pullback since January. An underwhelming policy response at the Third Plenum and shaky economic fundamentals prompted investors to offload local shares.

This decline has pushed the Hang Seng Index’s 14-day relative strength index to near 30 on price charts, a reading that signals stocks are oversold, according to technical analysts.

Advertisement

“The market has approached support levels after the recent significant correction,” Kevin Liu, equity strategist and managing director at CICC, said in a note on Sunday. “Barring any unexpected shocks, there’s a possibility that the market could stabilise at this position.”

Advertisement
Select Voice
Select Speed
1.00x