BYD, Li Auto lead Hong Kong stock gains on record EV sales as traders bank on fresh stimulus

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China’s top legislative body could deliver a much-awaited fiscal stimulus this week, while the Fed is seen extending its monetary easing

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Pedestrians pass by an electronic board in Shanghai displaying stock prices on October 10, 2024. Photo: AP Photo

Aileen Chuang

Published: 10:41am, 4 Nov 2024Updated: 5:03pm, 4 Nov 2024

Hong Kong stocks rose, led by electric vehicle (EV) producers amid record sales. Investors await further fresh catalysts from policymakers in Beijing to shore up economic growth, while traders bet the Federal Reserve will cut rates this week to extend its easing cycle.

The Hang Seng Index gained 0.3 per cent to 20,567.52 on Monday, following a 0.4 per cent setback last week. The Hang Seng Tech Index rose 1.1 per cent. Onshore stocks also advanced, with the CSI 300 benchmark climbing 1.4 per cent and the Shanghai Composite Index adding 1.2 per cent.

Trip.com jumped 4.8 per cent to HK$521 and Wuxi Biologics appreciated 2.7 per cent to HK$16.76. China’s biggest EV makers rallied after chalking up record sales last month. Geely surged 4.6 per cent to HK$14.48 and BYD strengthened 3.5 per cent to HK$287.40. Xpeng soared 7.7 per cent to HK$47.70.

“Some auto stocks performed better, following the relatively-good October sales numbers,” said Jason Chan, senior investment strategist at Bank of East Asia. “I believe that the policy of replacing old vehicles with new ones has powered the surge.”

03:49

Rally cry by Xi sets economic priorities for Chinese officials, absolves them of mistakes

Investors are banking on Beijing to deliver another round of tonic as part of its efforts to rescue the nation’s stock and property market. A blitz on September 24 helped spark a world-beating US$4.5 trillion rally in the subsequent four weeks. That advance has stalled as some experts said more measures are needed to revive market confidence.