Hong Kong stocks climb to five-week high as Alibaba and tech peers, carmakers attract buyers

On Oct 19, 2021 40

Hang Seng Index advances for a third day to the highest level since September 13 with tech, banks attracting buyers
Alibaba surges on reports it would launch a new home-grown server chip and said to be making a strategic investment in Unigroup restructuring

Hong Kong stocks climbed to a five-week high, fuelled by gains in Alibaba Group Holding and tech peers while financial stocks advanced amid the launch of cross-border wealth management product operations.

The Hang Seng Index rose 1.4 per cent to 25,753.62 as of 11.28am local time, a level not seen since September 13. The Shanghai Composite Index climbed 0.7 per cent to 3,591.86.

The Hang Seng Tech Index jumped 2.5 per cent, paced by a 11.9 per cent rally in Bilibili and a 5.5 per cent gain in Kuaishou Technology. Alibaba, the owner of this newspaper, jumped 1.5 per cent on media reports it was launching a new server chip and seeking to make a strategic investment in distressed chip maker Tsinghua Unigroup.

Banks rallied as Hong Kong approved 19 lenders to offer wealth management products from Tuesday, following the official launch of the cross-border Connect scheme with Macau and mainland markets last month. China Merchants Bank rose 3.2 per cent while Citic added 2 per cent. AIA and Ping An Insurance rose by more than 2.7 per cent.

“Wealth Management Connect opens up unprecedented market opportunities for the financial industry in this area as consumer wealth continues to grow,” said Lawrence Lam, consumer business manager for Citigroup in Hong Kong. The US lender is teaming up with China Guangfa Bank to serve clients.

Elsewhere, Geely Automobile rose 2.2 per cent with BYD adding 2 per cent, sustaining a rally after robust industry sales of electric cars in mainland China last month.

Guotai Junan Securities expects sustained growth of EV sales this quarter in China and globally. Better control of Covid-19 pandemic and improving supply of vehicle chips augur well for the coming peak consumption season, it added.

Four companies started trading on Tuesday. MicroTech Medical Hangzhou gained 0.1 per cent to HK$30.55 in Hong Kong while Beijing Tongyizhong New Material Technology more than tripled to 14.26 yuan in Shanghai. In Shenzhen, Hunan Hualian China Industry rose 44 per cent to 13.49 yuan and Shaoyang Victor Hydraulics surged 160 per cent to 31.02 yuan.

Authors: Iris Ouyang, Enoch Yiu, SCMP