Alibaba, Meituan fuel longest winning run in 3 months in Hong Kong stocks on China recovery outlook, US rate pause bets
- Top Chinese tech stocks helped lift the Hang Seng Index by 1.3 per cent, adding to the benchmark’s 2.7 per cent gain in the preceding four days
- Consensus forecasts on aggregate financing, producer prices suggest China’s economic recovery gained momentum last month
The Hang Seng Index climbed 1.3 per cent to 17,893.10 on Wednesday, adding to a 2.7 per cent gain in the preceding four days. The Tech Index gained 2 per cent and the Shanghai Composite Index added 0.1 per cent
Alibaba Group added 1.4 per cent to HK$84.60 and Tencent rose 0.9 per cent to HK$311, while Sunny Optical rallied 12 per cent to HK$59.20. Chinese sportswear maker Li Ning gained 5.3 per cent to HK$33.55, and peer Anta Sports jumped 3.4 per cent to HK$88.70. Meituan advanced 3.7 per cent to HK$116.50.
Aggregate financing, the broadest measure of mainland China’s credit supply, probably increased to 370 billion yuan (US$50.7 billion) in September from 312 billion yuan in August, according to consensus forecasts. Producer prices fell 2.4 per cent, narrowing from a 3 per cent decline in August.
Federal Reserve officials have offered less hawkish comments this week, including Fed Bank of Atlanta President Raphael Bostic, who said policy is restrictive enough to cool inflation to the official long-term target of 2 per cent.
“China’s economy is continuing its slow recovery, and the interest-rate increases overseas are close to ending,” said An Qingliang, an analyst at Guorong Securities. “Positive signals have been building up.”
