Update | Tencent, Geely Auto power Hong Kong stocks to third day of gains

Hong Kong stocks rose for a third consecutive trading day on Tuesday, pushing the Hang Seng Index to its highest level since May 2015, as Tencent and Geely Automobile advanced.

The Hang Seng Index added 0.6 per cent, or 164.55 points, to 27,854.91 at the close, the highest since May 27, 2015. The Hang Seng China Enterprises Index added 0.2 per cent, or 25.38 points, to 11,079.79. Mainland China’s equity benchmark ended 0.1 per cent higher, with a gauge tracking ChiNext small-caps rising to a three-week high.

The Hang Seng Index’s 27 per cent gain this year is the best among Asia’s major markets as investors from the mainland and overseas have been snapping up equities in the city due to cheaper valuations and the Hong Kong dollar’s peg to the greenback.

“We see a bunch of technology companies’ shares move up as the market sentiment continues to be lifted by strong gains in Tencent in particular,” said Kingston Lin King-ham, director of AMTD securities brokerage.

Technology heavyweight Tencent extended its winning streak on Tuesday, closing up 2.5 per cent to HK$328.60. The company is due to report its interim results on August 16.

Hong Kong-based AAC Technologies added 1.6 per cent to HK$112.20. The Apple supplier was accused of “dubious accounting” by short-seller Gotham City Research in May, after which hacktivist group Anonymous Analytics backed up AAC and rated the firm a strong buy.

Geely Automobile was among the biggest winners on the Hong Kong bourse, adding 6 per cent to HK$19.66 after news that Sweden’s Volvo agreed to share engine technology with the Zhejiang-based car maker, according to Reuters.