Tencent, Alibaba power Hang Seng Index rally as mainland funds pile in and investors look to Kuaishou IPO windfall
- Hang Seng Index recouped most of the 1,164-point slide last week, as quarterly earnings roll in
- Investors turned bullish again on markets as Kuaishou Technology prepares for its debut later this week with an expected windfall for buyers
The Hang Seng Index surged 1.2 per cent to 29,248.70 on Tuesday. The gauge earlier gained as much as 2.1 per cent to recoup all of the 1,164-point decline last week before paring gains. The Shanghai Composite Index added 0.8 per cent at 3,533.68.
Tencent Holdings, the biggest index member with a 10.8 per cent weight, advanced 1.8 per cent to HK$724.50. Mainland traders were net buyers of HK$2.7 billion (US$343 million) of the stock on Tuesday on top of almost HK$5 billion on Monday.
Meituan, with a 6.4 per cent index weight, rose 1 per cent to HK$395, as the overall net inflows from mainland into the Hong Kong stock market increased to HK$17.3 billion on Tuesday from HK$16.4 billion a day earlier, according to exchange data.
Pharmaceutical companies also saw hefty gains. CSPC Pharmaceutical soared by 9.2 per cent to HK$8.82. Sino Biopharmaceutical surged by 4.4 per cent to HK$7.61. Hotpot chain Haidilao International Holding soared by 10.4 per cent to HK$76.25, a record high.
This month inflows have added to more than HK$310 billion of injection in January alone and HK$59.9 billion in December through the southbound channels of the Stock Connect programme. They have been aiding gains in tech leaders including Tencent and SMIC, as well as Chinese telecoms stocks sanctioned by the US.
