Hang Seng Index renews attempt at 30,000 level as HK stocks rally on mainland fund inflows

21-Jan-2021 Intellasia | South China Morning Post | 6:02 AM Print This Post

Hong Kong stocks attempted to scale a new 20-month high as the Hang Seng Index approached 30,000 points for second day. Technology and pharmaceutical stocks rallied with funds from mainland China flocking into the market.

The benchmark index climbed to as high as 29,984.12 in early Wednesday trading, within less than 0.1 per cent of breaking the psychological level last seen on May 3, 2019. It pulled back to 29,718.86 at local noon break.

The Shanghai Composite Index ended the local morning session almost flat at 3566.67 for a 2.7 per cent gain so far this month. The CSI300 index, which tracks the biggest companies on Shanghai and Shenzhen bourses, advanced 0.3 per cent.

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Meituan led the advance, surging 6 per cent to a record high of HK$361.60. Tencent and bourse operator Hong Kong Exchanges & Clearing also reached record high, rising 2.2 per cent to HK$669.50 and 1.7 per cent to HK$510 respectively.

The Hang Seng Tech Index, which gauge the biggest industry players, jumped 2.5 per cent with Ali Health surging 10 per cent and JD Health adding 9 per cent respectively.

Blue-chip stocks in Hong Kong have now appreciated 9.2 per cent this year in the best start to a year since 1985. A positive end in January will complete a four-month advance, the best winning sequence since April 2019.

Southbound funds supported gains in Hong Kong, as new funds look to deploy cash as subscriptions reached record highs recently. Mainland stock traders have spent HK$185.3 billion on Hong Kong-listed stocks in the new year as of Tuesday, data from exchange data.

China’s top investment bank CICC expects more than 600 billion yuan (US$92.7 billion) of capital will flow into the Hong Kong markets this year, according to a report it published on Wednesday. Mutual funds have raised more than 200 billion yuan so far this year, and most of them can invest in Hong Kong stocks, it added.

China’s economic growth is still recovering and Chinese stocks listed in Hong Kong will record 15 to 20 per cent profit growth in 2021, CICC said, noting that Hong Kong market still trades at a discount t mainland A shares.

Markets in Asia were mixed. The S&P/ASX 200 in Australia rose 0.5 per cent and South Korea’s Kospi Index added 0.05 per cent while the Nikkei 225 in Japan slipped 0.5 per cent.

Among new listings in China, Shentong Technology Group soared by 44 per cent to 8.48 yuan in Shanghai. In Shenzhen, Anhui Huaqi Environmental Protection & Technology more than tripled to 47.55 yuan, and Beijing Yjk Building Software surged by 172 per cent to 155.06 yuan.

https://sg.news.yahoo.com/hang-seng-index-renews-attempt-030228502.html

 

Category: Hong Kong

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