Hong Kong stocks extend rebound as Alibaba jumps 5% on insider buying, China vows more support to calm market

Hong Kong stocks extend rebound as Alibaba jumps 5% on insider buying, China vows more support to calm market

24 Jan Hong Kong stocks extend rebound as Alibaba jumps 5% on insider buying, China vows more support to calm market

Posted at 02:40h in Asia by

Hong Kong stocks rose for a second day to a one-week high, fuelled by the biggest gain in Alibaba Group in two months, amid speculation about corporate insider buying. China’s securities regulator added to the verbal support for the local financial markets.

The Hang Seng Index jumped 1.6 per cent to 15,595.24 at 10.30am local time, adding to the 2.6 per cent rebound on Tuesday from a 15-month low. The Hang Seng Tech Index jumped 2.1 per cent, while the Shanghai Composite Index climbed 0.1 per cent.

Alibaba Group surged 5 per cent to HK$71.05, the most since November. Its chairman Joe Tsai bought about US$151 million worth of Alibaba’s US-listed shares last quarter, according to an SEC filing by his family office Blue Pool Capital on January 22. Co-founder Jack Ma bought US$50 million worth of its Hong Kong-listed shares last quarter, according to people familiar with the transactions.

Alibaba Group’s shares fell more than 11 per cent last quarter in both markets. The e-commerce group, based in Hangzhou in eastern Zhejiang province, is the owner of this newspaper.

Jack Ma, Joe Tsai replace SoftBank as Alibaba’s largest shareholders

Tencent jumped 2.1 per cent to HK$277.80 and NetEase surged gained 5.4 per cent to HK$154.10, after Chinese authorities took down a December proposal to tighten the video-gaming industry from its website in a rare reversal after a market pushback. Elsewhere, Meituan jumped 3.9 per cent to HK$68.90 and Baidu gained 4.9 per cent to HK$103.30.

The market rebound gained traction after the China Securities Regulatory Commission pledged more efforts to stabilise the market. This came after Premier Li Qiang ordered officials to attract more funds and take forceful measures to calm investors, following a US$1 trillion stock rout this month.

Two stocks started trading on Wednesday. Wuxi Holyview Microelectronics advanced 62 per cent to 62.36 yuan in Shanghai, and Guangdong Misun Technology surged 105 per cent to 74.75 yuan in Shenzhen.

Other key Asian markets declined. South Korea’s Kospi lost 0.3 per cent and Japan’s Nikkei 225 dropped declined 0.8 per cent. Australia’s S&P/ASX 200 was little changed.

Source link

Tags:
, , ,