Hong Kong stocks trade close to four-week high as NetEase jumps on new game approvals, EV makers BYD, Li Auto rise
- The National Press and Publication Administration gave the green light to 14 imported games
- Sentiment has been recovering after a visit to China by US Treasury Secretary Janet Yellen, as traders await March economic data due later this week
The Hang Seng Index gained 0.6 per cent to 16,828.07 at the close. The Hang Seng Tech Index also climbed 1 per cent, and the Shanghai Composite Index edged up 0.1 per cent.
NetEase advanced 4.1 per cent to HK$157.50 after the National Press and Publication Administration gave the green light to 14 imported games in April. Chinese electric-vehicle (EV) maker BYD rose 2.6 per cent to HK$207.20 and rival Li Auto added 0.9 per cent to HK$121.90. Xiaomi, the smartphone maker that has recently made its foray into the EV business, climbed 3.1 per cent to HK$15.98.
Sentiment on Hong Kong stocks has been on a slow recovery after the visit by US Treasury Secretary Janet Yellen eased geopolitical tensions and official data pointed towards strong consumer spending during the Ching Ming Festival. A purchasing manages’ index report also indicated that China’s manufacturing expanded at the fastest pace in a year last month.
“Investors are still cautious, waiting for a more meaningful and sustainable recovery to come through,” said Elizabeth Kwik, investment director of Asian equities at abrdn. “Valuations remain at a historic trough, which means many high-quality companies with strong brand names are trading cheap. This bodes well for the stock market, as effects from policy support are gradually starting to materialise. Over time, this should help reverse the trend of downward revision of companies’ earnings.”
