Hang Seng rallies as China props up A-shares The Standard
Hong Kong's benchmark Hang Seng Index rebounded by 500 points yesterday as tech stocks recovered some of their losses and old economy shares extended their rally, following reports that state-backed funds had intervened in China's A-share market to slow the pace of declines on Tuesday.
The Hang Seng Tech Index surged 3.65 percent, led by a 6.8 percent rise of Alibaba (9988) as SoftBank said it wasn't involved in the Chinese tech giant's filing of additional American depositary shares, allaying investor fears that the firm's largest shareholder might be looking to cash out.
Shares in Alibaba had fallen earlier this week after the firm failed to register an additional one billion ADSs with the Securities and Exchange Commission.
The second and third top blue-chip gainers were taken by NetEase (9999) and Xiaomi (1810) whose stocks rose over 4.7 percent. Meituan (3690) climbed 3.7 percent and Tencent (0700) went up 2.7 percent.
The Standard ChannelMore>>Chinese online video platform Bilibili's (9626) stock surged 8.5 percent following a statement on late Tuesday that it will hire 1,000 new content moderators and closely monitor the health of its workers.
It had previously denied that it overworked an employee who died during the Chinese New Year holiday.
Telecoms and financial stocks also performed well. China Mobile (0941) rose 2.9 percent after its A-shares increased to a record high.
HSBC (0005) continued to rise 0.85 percent to a two-year high of HK$59.3.
Shares of sportswear and auto firms advanced as well. Anta Sports Products (2020) and Li Ning (2331) rose 4.6 percent and 3.9 percent, respectively.
Biotech shares' performance was mixed. WuXi Biologics (2269) fell 1 percent after the trading resumption as investment houses have mixed views towards the impact of the company being added to the US unverified list, while CanSino Biologics (6185) grew 1 percent.
Chinese property developers' shares also rose after regulators eased loan curbs on public rental homes.
Support for the A-share market from state funds on Tuesday, known as China's "national team," came as the mainland's benchmark gauge looked set to erase its advance from Monday when markets reopened following the week-long Lunar New Year holiday, Bloomberg reported.
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