Hong Kong stocks end higher as healthcare, industrial firms rebound

Hong Kong stocks closed higher on Monday, led by a rebound in healthcare and industrial firms, but big tech names faltered amid lingering regulatory concerns that curbed gains in the market. The Hang Seng index rose 0.5% to 29,106.15, while the China Enterprises Index gained 0.6% to 11,092.95.

Hong Kong stocks closed higher on Monday, led by a rebound in healthcare and industrial firms, but big tech names faltered amid lingering regulatory concerns that curbed gains in the market.

The Hang Seng index rose 0.5% to 29,106.15, while the China Enterprises Index gained 0.6% to 11,092.95. Leading the gains, the Hang Seng healthcare index and the Hang Seng industrials index added 3.1% and 2.2%, respectively, as investors cheered China's solid economic growth in the first quarter.

China's economic recovery quickened sharply in the first quarter to record growth of 18.3% from last year's deep coronavirus slump, propelled by stronger demand at home and abroad and continued government support for smaller firms. However, tech giants weakened, with Alibaba losing 1.5% and pushing the Hang Seng IT index 0.1% lower.

Tencent Holdings Ltd and JD.Com Inc slipped 0.8% and 0.5%, respectively. Ant Group is exploring options for founder Jack Ma to divest his stake in the financial technology giant and give up control, as meetings with Chinese regulators signaled to the company that the move could help draw a line under Beijing's scrutiny of its business, according to a source familiar with regulators' thinking and two people with close ties to the company.

China has imposed a sweeping restructuring plan on Jack Ma's Ant Group, the fintech conglomerate whose record $37 billion IPO was derailed by regulators in November, that will see the group become a financial holdings company among other things. Investors need to pay close attention to tech stocks, which have seen an evident correction, in order to have a sense of where the market could go next, brokerage Central China International said in a report.

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