Hong Kong stocks rally as sentiment remains upbeat on coronavirus progress, anticipated China policy support
- Tech stocks got boost from unverified Chinese media reports JD.com could do its secondary listing in Hong Kong as early as June
- Tencent advanced 4 per cent; Alibaba rises 2.7 per cent
Hong Kong stocks rallied Monday for the second straight session, as investors banked on additional progress in the coronavirus battle and policy support from China for its ailing economy.
China stocks slipped, and markets were mixed elsewhere in the Asia-Pacific region.
Investors pinned hopes on countries starting to open up and progress on treatments and vaccines for the new coronavirus, which has infected more than 4.1 million people and killed nearly 300,000 worldwide.
Sentiment also got a boost from unverified mainland Chinese media reports that e-commerce giant JD.com will kick off its secondary listing in Hong Kong on May 25 and plans to debut next month. The reports, which widely circulated on Chinese websites, could not be independently confirmed by the South China Morning Post, but were a prime driver of the positive mood that pushed up the Hang Seng Index by 1.5 per cent, said Alan Li, portfolio manager of Atta Capital.
“Hong Kong stocks followed the rally and optimistic sentiment of the US last Friday,” Li said. “Also [the rally was] triggered by JD starting public offer for its second listing in Hong Kong this month. HKEX [stock operator] and tech stocks led the rally.”
