Alibaba, SMIC, Geely lead Hong Kong stock rebound as China’s war games around Taiwan put markets on edge
- Stocks in Hong Kong and mainland China recover from Tuesday’s sell-off sparked by cross-strait tensions over Pelosi’s visit to Taiwan
- Alibaba, SMIC and Geely lead gainers with market showing tentative return in confidence while China plans live-fire drills encircling island
The Hang Seng Index rose 0.4 per cent to 19,767.09 at the close, paring an earlier advance of as much as 1.2 per cent. The benchmark fell 2.4 per cent on Tuesday. The Hang Seng Tech Index jumped 1.2 per cent while the Shanghai Composite Index erased gains to log a 0.7 per cent setback.
Alibaba Group Holding jumped 3.8 per cent to HK$90.35, leading winners in Hong Kong. The e-commerce group is due to issue its quarterly earnings on Thursday, with consensus pointing to a 60 per cent slump from a year earlier based on the US accounting standard.
Taiwanese stocks wavered before closing 0.2 per cent higher, but companies with exposure to the mainland recorded losses. China Airlines and President Chain Store lost 2.3 per cent and 2.7 per cent, respectively.
Other Chinese tech peers rebounded along with Alibaba, as Tencent Holdings gained 2.6 per cent to HK$302.60 and JD.com added 2.2 per cent to HK$233.20. Chip maker Semiconductor Manufacturing International Corp (SMIC) rallied 4.1 per cent to HK$16.18. Carmaker Geely Auto added 3.4 per cent to HK$17.58.
