Update | Hong Kong stocks gain ground as Tencent hits all-time high, insurers rally

Hong Kong stocks rose for the first time in three days after Tencent Holdings reported earnings that exceeded analysts’ estimates, and insurers including Ping An resumed rallies.

The Hang Seng Index gained 0.6 per cent, or 167.07 points, to 29,018.76 at Thursday’s close, rebounding from a 1 per cent loss a day earlier which was its steepest decline in almost four weeks. The Hang Seng China Enterprises Index, known as the H-share gauge, advanced 1.1 per cent. Mainland bonds and benchmarks of big-cap shares climbed after the central bank pumped money into the financial system in the biggest net injection in 10 month.

Trading volumes on the Hong Kong exchange were a fifth below the 30-day average today, according to data compiled by Bloomberg. The Hang Seng Index is now down 0.6 per cent after rising to an almost decade high of 29,182.18 on Monday, as turmoil in the mainland’s bonds and equities arising from liquidity concerns hurt sentiment.

“People started buying as the benchmark approached key support at the 28,800 level and given Tencent’s strong results,” said Kenny Wen-kit, wealth management strategist at Sun Hung Kai Financial. “But we still need to watch out for consolidation of the US and A-share markets.”

Tencent jumped 2.3 per cent to an all-time high of HK$391.80 after announcing impressive results. After the market closed on Wednesday, the Chinese internet giant said third-quarter profit increased 61 per cent from a year ago to 18 billion yuan (US$2.7 billion). That surpassed the 15.8 billion yuan estimated by analysts in a Bloomberg poll.

Yixin Group, China’s biggest online car retailer backed by Tencent and JD.com, rallied 5.5 per cent from its initial public offering price to HK$8.12 on its first day trading.