HONG KONG STOCKS RISE AS BANK RESCUE PLANS STEM GLOBAL ROUT, BAIDU SURGES, WHILE CHINA RESTORES CALM IN BOND MARKET
Hong Kong stocks rose, tracking an overnight rally in global markets, after authorities in the US and Switzerland moved to stem a deeper crisis in the banking system with liquidity injection plans. China resumed live data feeds to restore calm in the local bond market.
The Hang Seng Index climbed 1.9 per cent to 19,559.87 at the local noon trading break, lifting this week’s gain to 1.2 per cent. The Tech Index surged 4.4 per cent while the Shanghai Composite Index advanced 1.6 per cent.
Tech stocks led the rally, with Alibaba Group rising 1.9 per cent to HK$82 and Tencent strengthening 2.6 per cent to HK$344.60. Macau casino operator Galaxy Entertainment added 2.5 per cent to HK$51.65 and developer Longfor Group appreciated 5 per cent to HK$22.25.
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Elsewhere, Baidu soared 15.7 per cent to HK$144.70 as analysts at Citigroup and Jefferies turned positive on its growth outlook, partly driven by its latest introduction of Ernie, a ChatGPT-like rival.
“The sentiment in markets has improved and there is optimism in China’s tech and real estate sectors,” said Gary Ng, a senior economist in Hong Kong at Natixis. “Still, it is possible to see pressure down the road. The market is still very sensitive to any news related to financial stability.”
China reopening playbook unravels in US$422 billion stock market rout
US stocks surged overnight by the most since January, after a group of lenders including JPMorgan Chase and Bank of America agreed to deposit US$30 billion into First Republic Bank to pre-empt a liquidity crisis, according to a statement. Separately, the Swiss government is said to be planning to force Credit Suisse and UBS to combine, according to media reports.
Confidence among foreign investors also improved after China reinstated live data feeds for bond traders on Friday, days after authorities abruptly cut off access amid overriding concerns about data security, Reuters reported.
Elsewhere, CK Asset Holdings fell 4.2 per cent to HK$46.75, after the developer said net income shrank 7 per cent last year. Li Ning plunged 6.9 per cent to HK$59.60 after the sportswear maker said earnings almost plateaued last year, trailing market estimates.
Weihaishi Honglin Electronics jumped 30 per cent to 25.98 yuan on its first day of trading in Shenzhen.
Markets in the Asia-Pacific region traded higher. Japan’s Nikkei added 0.8 per cent and South Korea’s Kospi gained 0.8 per cent while the ASX S&P 200 in Australia added 0.4 per cent.
More from South China Morning Post:
- Hong Kong jobless rate drops to 3.3 per cent in 11th straight decline, signalling city is on track to post-Covid normality
- Baidu unveils China’s answer to ChatGPT with no live preview and limited beta, dashing hopes and sending stock tumbling
- With Silicon Valley Bank bailout, an unrepentant US is spending its way out of trouble again
- Chinese stocks offer no shelter from Credit Suisse, SVB turmoil as reopening euphoria ends in US$422 billion market rout
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2023-03-17T06:53:14Z dg43tfdfdgfd
