Hong Kong stocks rally as some global funds turn bullish on Chinese tech leaders while Kuaishou, Xpeng, Swire gain on index bets

Hong Kong stocks rally as some global funds turn bullish on Chinese tech leaders while Kuaishou, Xpeng, Swire gain on index bets

16 Feb Hong Kong stocks rally as some global funds turn bullish on Chinese tech leaders while Kuaishou, Xpeng, Swire gain on index bets

Posted at 03:00h in Asia by

Hong Kong stocks rose after reports showed some fund managers have turned upbeat on China’s biggest technology companies as valuations cheapened. Xpeng, JD Logistics and Swire Properties jumped on speculation they will join the benchmark index from next month.

The Hang Seng Index advanced for a third day, adding 1.2 per cent to 16,140.92 at 10.45am local time, taking the rally this week to about 2 per cent, while the Tech Index jumped 1.7 per cent. Financial markets in mainland China will reopen on Monday after a week-long Lunar New Year holiday.

Alibaba Group climbed 1.3 per cent to HK$72.20 while e-commerce peer JD.com jumped 2.7 per cent to HK$93.70. Sportswear maker Li Ning added 2 per cent to HK$20.65 while casino operator Sands China rallied 2.8 per cent to HK$24. HSBC rose 0.6 per cent to HK$61.70 before its 2023 earnings report next week.
Michael Burry of the Big Short fame, made Alibaba Group and JD.com among its top holdings last quarter, according to its 13F regulatory filing this week. Hedge funds including Renaissance Technologies, Saba Capital and Point72 added new positions, as did Canada Pension Plan Investment Board and Oaktree Capital Management.

Alibaba Group is the owner of the South China Morning Post.

Market sentiment improved after Chinese authorities stepped in earlier this month to put a floor under the trillion-dollar market rout since early 2021. Beijing also boosted market confidence through purchases by state investment funds and measures to curb short selling.

Bridgewater cuts more Chinese stocks while Temasek, PIF hold for turnaround

Meanwhile, Kuaishou Technology added 1 per cent to HK$44.55, Swire Properties 1.6 per cent to HK$15.12 and electric-car maker Xpeng gained 2.5 per cent to HK$36.30, while JD Logistics surged 3.4 per cent to HK$7.54. Analysts at investment bank CICC said they are candidates for inclusion in the next index review.

Hang Seng Indexes Company, the city’s benchmark index compiler, will publish its quarterly review later today. The constituent changes will take effect from March 4, it said in a notice last month.

Elsewhere, major Asian markets traded higher, tracking overnight gains in US equities. The Nikkei 225 in Japan and the S&P ASX 200 in Australia both advanced by 0.9 per cent, while the Kospi Index in South Korea gained 0.8 per cent.

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