- Hang Seng Index extends a rally to three-week high as China’s exports rose more than expected in August
- Meituan, Tencent and Alibaba are still favoured by investors seeking to pick up bargains after recent sell-off
Hong Kong stocks advanced after a government report showed China’s exports surged in August by more than economists predicted. Chinese technology firms rallied for a sixth day in seven after the government reassured investors of its support amid regulatory crackdowns.
The Hang Seng Index rose 0.6 per cent to 26,322.18 at the local noon break to reach the highest level since August 13. The Shanghai Composite Index gained 0.8 per cent to 3,649.65.
Meituan climbed 4.9 per cent to HK$259.60 while Tencent added 2.6 per cent to HK$518. Alibaba Group Holding, the owner of this newspaper, appreciated 1.3 per cent to HK$170.20. Chinese Vice Premier Liu He earlier pledged to support the nation’s private businesses despite ongoing regulatory crackdowns.
“Investor sentiment has significantly improved especially in tech stocks,” said Gary Ching, Hong Kong-based chief analyst for macroeconomic and strategy at Guosen Securities. “It will need more time to see how long it will sustain.”
China’s exports surged 25.6 per cent in US dollar terms in August from a year ago, the customs administration reported on Tuesday, while imports jumped 33.1 per cent. They exceeded consensus forecasts for 17.3 per cent and 26.9 per cent, respectively. Other recent government reports last month had indicated growth in the world’s second-largest economy lost significant momentum so far this quarter.
Logistics and transport stocks benefited from the news. Chang Jiang Shipping Group Phoenix surged by 10 per cent in mainland. Sinotrans jumped 3.3 per cent in Hong Kong.
Two stocks began trading for the first time in mainland China. Zhuzhou CRRC Times Electric surged 77.3 per cent to 55.63 yuan while Sicher Elevator soared 291.9 per cent to 15.40 yuan.
Author: Iris Ouyang, SCMP