Hong Kong shares jump on mainland buying, tech hits record high

Hong Kong shares climbed more than 2% on Monday as mainland investors continued to buy into the market via the Stock Connect, with tech and material stocks leading the pack. ** The Hang Seng index added 2.1% to 30,057.01, while the Hong Kong China Enterprises Index gained 2.2% to 11,939.37.

Reuters | Hong Kong | Updated: 25-01-2021 10:38 IST | Created: 25-01-2021 10:23 IST
Hong Kong shares jump on mainland buying, tech hits record high
Representative Image Image Credit: StoryBlocks

Hong Kong shares climbed more than 2% on Monday as mainland investors continued to buy into the market via the Stock Connect, with tech and material stocks leading the pack.

** The Hang Seng index added 2.1% to 30,057.01, while the Hong Kong China Enterprises Index gained 2.2% to 11,939.37. Both indexes were up after two straight sessions of falls. ** Leading the rally, the Hang Seng tech index jumped 4.1% to a record high, while the Hang Seng materials index rose 2.9%.

** The top gainers among H-shares were Haidilao International Holding Ltd, up 8.5%, followed by Tencent Holdings Ltd, rising 8.32%, and Semiconductor Manufacturing International Corp, up by 8.07%. ** By midday, mainland investors had purchased a net HK$12.4 billion worth of Hong Kong stocks via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.

** "Compared to other markets, Hong Kong stocks remain relatively cheap," said Kenny Ng, an analyst at brokerage Everbright Sun Hung Kai in Hong Kong. ** "More and more large U.S.-listed Chinese companies would also seek listings in Hong Kong, increasing the attractiveness of the city's stock market," he added.

** He, however, urged caution, saying there might be a correction in the coming weeks after recent strong gains. ** Chinese online video company Kuaishou Technology is aiming to raise $4.95 billion to $5.42 billion in an initial public offering that will be the largest in Hong Kong for more than a year, according to a term sheet reviewed by Reuters.

** On the mainland, the CSI300 index rose 1.1% to 5,628.46 by the end of the morning session, while the Shanghai Composite Index gained 0.6% to 3,627.01. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.85%, while Japan's Nikkei index was up 0.33%.

** The yuan was quoted at 6.4754 per U.S. dollar, 0.12% firmer than the previous close of 6.483.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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