Hong Kong stocks rally a second straight day, with China’s largest chip maker SMIC soaring nearly 11 per cent on A-share plans
- Sunny Optical, AAC Tech gain on positive expectations for Huawei smartphones
- Alibaba, Tencent, Meituan Dianping among new economy stocks advancing
Hong Kong stocks rallied for a second straight day, as investors piled into China’s largest chip maker on news it is planning an A-share listing in the mainland as well as into new economy stocks and smartphone parts makers.
Investors continued to brush off Monday’s rout, when the Hang Seng Index fell more than 1,000 points, its biggest drop in six weeks, as US-China tensions heated up. Overall, Hong Kong sentiment has been positive, with investors feeling the world’s efforts to beat the coronavirus will succeed. The benchmark has risen in seven of the last nine sessions.
On Wednesday, the Hang Seng gained 1.1 per cent to 24,137.48. That broke a two-session streak of it trading below 24,000.
China’s largest chip maker Semiconductor Manufacturing International Corp (SMIC) rocketed 10.7 per cent higher, after the company’s board approved an A-share listing on the Sci-Tech Innovation Board, according to a stock exchange filing after market close on Tuesday.
Huawei parts makers Sunny Optical soared 5.1 per cent and AAC Technologies shot up 4.1 per cent, as BOCOM International reiterated its buy rating on the stocks after Huwaei reported shipment growth in China in the first quarter – the only big Chinese smartphone maker to do so.