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Hong Kong stock market
BusinessBanking & Finance

Tencent, HSBC fuel Hong Kong stock advance as China vows to open markets while Tingyi slumps on earnings shock

  • China will keep opening its markets to foreign capital in message to global CEOs including Apple’s Cook and Bridgewater’s Dalio
  • Noodle maker Tingyi sank after reporting a 31 per cent slide in 2022 earnings, underscoring the slow recovery in domestic consumption

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A man on a bicycle stands in front of an electronic board showing stock indices in Shanghai, Tokyo and New York. Photo: Reuters
Mia Castagnone
Hong Kong stocks rose after China’s top leadership vowed to keep opening the economy to foreign investors amid headwinds, reassuring global funds that have ploughed more than US$25 billion into the local equity market this year.
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The Hang Seng Index gained 1.1 per cent to 19,784.65 closing of trade. The Tech Index climbed 0.9 per cent while the Shanghai Composite Index slipped 0.3 per cent.

Tencent surged 4.2 per cent to HK$378 while Chow Tai Fook Jewellery Group jumped 2.4 per cent to HK$15.58. Meituan added 2.3 per cent to HK$134.40, Hansoh Pharmaceuticals jumped 2.2 per cent to HK$13.84 while HSBC added 1.5 per cent to HK$52.40.

Limiting gains, Tingyi tumbled 10.4 per cent to HK$12.70 after earnings in 2022 slumped 31 per cent, in the noodle maker’s first report card since joining the benchmark index in December.

“The recovery in China is on a strong footing,” Jing Ning, head of equities at Fidelity International, said at a webinar on market outlook on Tuesday, citing a stabilising housing market and investment data, among other factors. “Valuation is attractive.”

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China’s biggest companies, tracked by the CSI 300 Index of onshore stocks, trade at about 12 times price-earnings multiple, the cheapest since 2018, according to Bloomberg data.

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