Hong Kong shares boosted by Alibaba, Meituan; gains capped as services activity slows
The Hang Seng Index is clawing back ground after losing 2 per cent in June, helped by mainland investors who are focused on high-dividend yielding shares
Hong Kong
stocks advanced for a third straight day as heavyweight
Alibaba Group sparked a tech rally, while mainland investors lent support piling into high dividend stocks. Gains were tempered by data that showed slowing momentum in service activity.
The Hang Seng Index gained 1.2 per cent to 17,978.52 at the local noon trading break after briefly topping the 18,000 level, with the Tech Index rallying 2.5 per cent in a rebound from two-month lows. The Shanghai Composite Index declined 0.4 per cent.
E-commerce group Alibaba rallied 2.9 per cent to HK$72.50, its best gain in seven weeks, after the company
said it rewarded shareholders with US$5.8 billion in share buy-backs last quarter. Food delivery platform Meituan jumped 2.9 per cent to HK$115.50 and search engine operator Baidu jumped 3.2 per cent to HK$86.55, while JD Health surged 5.3 per cent to HK$22.05.
The Hang Seng Index is clawing back ground after losing 2 per cent in June, helped by mainland investors who are focused on high-dividend yielding shares. Onshore funds bought HK$6 billion (US$770 million) of Hong Kong-listed stocks via the Stock Connect on Monday, the most in two weeks.
“Sentiment is stabilising following the consolidation” from a May peak, analysts at Huatai Securities said in a note on Wednesday. Still, the market is torn between those who feel the worst is over and those who expect conditions are about to get worse. However, southbound flows should lend support to the market, they added.
Enthusiasm was capped by a private report released on Wednesday that showed China’s services activity expanded at the
slowest pace in eight months. The Caixin China services purchasing managers’ index (PMI) was 51.2 in June, slowing from 54 in May and falling short of consensus estimates.
Three stocks debuted on Wednesday. Two new listings in Hong Kong tumbled, with Zhonggan Communication Group declining 42 per cent to HK$0.72 and Xi’an Kingfar Property Services dropping 14.8 per cent to HK$6.39. In Shanghai, driving equipment maker Shanghai Ananda Drive Techniques surged 120 per cent to 49.33 yuan per share on its first day of trading.
https://www.scmp.com/business/markets/article/3268951/hong-kong-shares-boosted-tech-sector-gains-gains-capped-services-activity-slowdown
