The Hang Seng Index surged 1.9 per cent to 16,242,33 at the local noon trading break, bringing the gain this week to 3.3 per cent. The Tech Index jumped 2.7 per cent, the most since February 6. Financial markets in mainland China will reopen on Monday after a week-long Lunar New Year holiday.
Alibaba Group climbed 1.7 per cent to HK$72.50 while e-commerce peer JD.com jumped 3.7 per cent to HK$94.60 and Tencent added 0.8 per cent to HK$286.80. Sportswear maker Li Ning added 4.9 per cent to HK$21.25 and EV maker Li Auto added 4.9 per cent to HK$125.70.
Alibaba Group, the owner of the South China Morning Post, has risen 6 per cent in the past one month. Still, the stock has lost 29 per cent of its value over the past one year amid earnings disappointment, industry rivalry and regulatory headwinds at home.
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The ins and outs of giving lai see over Lunar New Year
The ins and outs of giving lai see over Lunar New Year
Chinese stocks listed at home and in Hong Kong have lost more than US$1 trillion of value since early 2021, prompting authorities in Beijing to step in earlier this month to put a floor under the rout. Officials have attempted to boost market confidence through market purchases by state investment funds and measures to curb short selling.
“An upside case of unorthodox measures should not be ruled out, given recent positive signs of stepped-up policies” from Beijing, macro and equity strateigists at UBS Chief Investment Office said in a report. “Cheap valuations and low global fund allocations also present a buying opportunity.”
Bridgewater cuts more Chinese stocks while Temasek, PIF hold for turnaround
Bridgewater cuts more Chinese stocks while Temasek, PIF hold for turnaround
Meanwhile, Kuaishou Technology added 1.8 per cent to HK$44.95, Swire Properties 2.6 per cent to HK$15.26 and electric-car maker Xpeng gained 6.4 per cent to HK$37.65, while JD Logistics surged 4.9 per cent to HK$7.65. Analysts at China’s biggest investment bank CICC said they are candidates for benchmark index inclusion.
Elsewhere, major Asian markets traded higher, tracking overnight gains in US equities. The Nikkei 225 in Japan and the Kospi Index in South Korea both surged by 1 per cent, while the S&P ASX 200 in Australia gained 0.7 per cent.
