Tencent, NetEase lift Hong Kong stocks to biggest gain in a week on games approval, as Li Auto leads EV surge on deliveries

Tencent, NetEase lift Hong Kong stocks to biggest gain in a week on games approval, as Li Auto leads EV surge on deliveries

02 Feb Tencent, NetEase lift Hong Kong stocks to biggest gain in a week on games approval, as Li Auto leads EV surge on deliveries

Posted at 02:23h in Asia by

Hong Kong stocks climbed by the most in a week after China approved a new batch of online video games in a sign the government is softening its stance on the industry. Li Auto led a jump in electric-vehicle makers amid robust sales in the local market.

The Hang Seng Index rose 1.6 per cent to 15,816.45 as of 11.02am local time, paring the weekly loss to 0.9 per cent. The Hang Seng Tech Index gained 1.9 per cent, and the Shanghai Composite Index added 0.2 per cent.

Tencent, the third-largest stock in the index with a 7.5 per cent weighting, rallied 4.2 per cent to HK$283, and online game operator NetEase gained 1.5 per cent to HK$158.30. Alibaba advanced 0.7 per cent to HK$71.55, and Baidu added 0.8 per cent to HK$103.60. Li Auto surged 6.7 per cent to HK$116.40, and Xpeng gained 2 per cent to HK$33.45. Anta Sports Products advanced 4.5 per cent to HK$68.15 after its unit Amer Sports rose in its debut in New York.

China approved 32 imported online games on Thursday, including Tencent’s Mobile DnF, according to the National Press and Publication Administration.

“We view this as a positive surprise as [Tencent’s] title is highly anticipated by the market,” said Jefferies in a report on Friday. The game-industry regulator “is supporting prosperous and healthy sector development”.

Elsewhere, Li Auto, Geely and Xpeng rallied after recording 58 to 110 per cent increases in January deliveries versus year-ago levels, according to filings.

The Hang Seng Index remains the worst-performing benchmark globally this year with a more than 7 per cent decline. China’s sluggish economy, a lack of more forceful stimulus measures and the Federal Reserve’s reluctance to cut rates in March have clouded the outlook for stocks.

Amer, backed by Anta Sports, rises in New York debut after US$1.4 billion IPO

China Resources Land jumped 5 per cent to HK$24.40, leading gains among Chinese developers after the central bank injected 150 billion yuan (US$20.9 billion) of low-cost funding to support the property sector. Longfor Group rallied 4.5 per cent to HK$8.84, and China Overseas Land and Development gained 3.3 per cent to HK$11.94.

Two companies made debuts. Jiangsu Huayang Intelligent Equipment, which makes power generation equipment, jumped 109 per cent to 58.67 yuan in Shenzhen, and Zhejiang Chemsyn Pharm slid 4.3 per cent to 19.04 yuan in Beijing.

Other major Asian markets all rose. Japan’s Nikkei 225 climbed 1 per cent, while South Korea’s Kospi jumped 2.3 per cent and Australia’s S&P/ASX 200 added 1.5 per cent.

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