Hong Kong stocks advance as tech firms add to US$205 billion rebound while Xi-Biden talk boosts sentiment

Hong Kong stocks advanced as tech companies rebounded, keeping the market on course for a three-week rally. Stocks in mainland China reached the highest level in six years as President Xi Jinping and President Biden spoke on Friday amid frayed ties.

The Hang Seng Index rose 1.7 per cent to 26,139.24 at the local noon break. The Shanghai Composite Index added 0.4 per cent to 3,709.05, a level not seen since August 2015. The Hang Seng Tech Index rose 2.6 per cent, clawing back more than half of the decline on Thursday.

Tencent Holdings jumped 1.5 per cent, recovering part of the 8.5 per cent slump on Thursday as the firm bought back more of its own shares. Meituan jumped 5 per cent while Alibaba Group Holding, the owner of this newspaper, added 3.8 per cent.

The 30-member tech gauge has regained HK$1.6 trillion (US$205.9 billion) in market value through September 9, after rebounding from an August 20 low, according to Bloomberg data.

Xi and Biden said in a phone call on Friday to manage the US-China rivalry. Xi also called for efforts to restores tense relations and that both nations would step up dialogues at various levels.

Investors are also keeping their eyes out for market goodies as the city prepares for deeper financial linkages with mainland China. The city is expected to unveil the Wealth Management Connect and Bond Connect schemes within days, Pang Gongsheng, deputy governor of China’s central bank, said on Thursday.

Helens International surged 18 per cent to HK$23.45 in its Hong Kong trading debut. Kunshan GuoLi Electronic Technology soared 489 per cent to 70.87 yuan in Shanghai.

Author: Iris Ouyang, SCMP