Hong Kong stocks halt losing streak on tech rally as Xpeng, Ganfeng Lithium underpin bullish EV outlook
- Xpeng underpins bullish electric-vehicle outlook with a second month of 10,000 deliveries, while Ganfeng Lithium signs a new contract with Tesla
- Tech stocks jump by the most in nearly four weeks, led big gains in Meituan, Bilibili and Baidu
The Hang Seng Index gained 1.3 per cent to 25,609.01 as of 10.30am local time. The Hang Seng Tech Index rallied 3.1 per cent, heading for the biggest win since October 7, as Alibaba Group Holding added 2 per cent while Bilibili, Baidu, Meituan all increased by more than 4 per cent.
Ganfeng Lithium appreciated 7.4 per cent to HK$154.30 after the company announced a three-year supply contract with Tesla. Carmaker Xpeng added 1.1 per cent to HK$188.70 after delivering more than 10,000 electric vehicles for a second month in October.
Sentiment in the local market improved following overnight gains in US equity markets, as the S&P 500 Index climbed to another record following a robust third-quarter earnings season and Tesla’s market value breached US$1 trillion. An index tracking US-listed shares of Chinese companies soared 4.1 per cent.
Companies representing more than half of the S&P 500 Index market value have reported earnings, with more than 80 per cent of them surpassing expectations on profit, according to BlackRock, while more than 75 per cent exceeded revenue estimates. These beat rates are slightly below the elevated levels of the past few quarters, but well above long-term averages.
Medical equipment manufacturer Shanghai MicroPort MedBot rose 0.4 per cent to HK$43.35 in its trading debut. Runa Smart Equipment, which produces and sells intelligent heating products, surged 31 per cent to 72.99 yuan while resin product manufacturer Zhejiang Zhengguang Industrial jumped 5.2 per cent to 38.2 yuan.
Stocks in South Korea advanced 1.6 per cent, while benchmarks in Japan and Australia retreated 0.2 and 0.8 per cent respectively.
Author: Cheryl Heng, SCMP