Hong Kong stocks rally on veteran fund manager’s bullish views on China market

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Oaktree Capital’s Howard Marks says the investment firm was looking for bargains on the onshore market

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A screen shows stock market movements in Beijing. Photo: AFP

Zhang Shidongin Shanghai

Published: 10:23am, 20 Nov 2024Updated: 5:07pm, 20 Nov 2024

Hong Kong stocks rose for a third day after a veteran fund manager said Chinese stocks were investible and offered bargains, giving solace to investors who are jittery about the nation’s growth outlook.

The Hang Seng Index closed 0.2 per cent higher at 19,705.01, reversing a 0.4 per cent loss after China refrained from cutting a key lending benchmark. The Hang Seng Tech Index advanced 0.4 per cent.

Benchmarks on the mainland ended higher. The CSI 300 Index gained 0.2 per cent and the Shanghai Composite Index added 0.7 per cent.

Apparel maker Shenzhou International Group Holdings and Hansoh Pharmaceutical Group led the gains. Search-engine operator Baidu rose before its earnings later on Thursday.

The Chinese government is trying to calibrate the right amount of stimulus to spur economic growth without relying on it excessively, said Howard Marks, co-chairman and co-founder of Oaktree Capital Management. He said the investment firm was looking for bargains on the onshore market, saying comments about China being uninvestible were “music to my ears”.

Howard Marks (right), co-founder and co-chairman of Oaktree Capital Management in a fireside chat with Sjoerd Leenart, CEO of JPMorgan Chase Asia-Pacific CEO during the pre-summit dinner of the 2024 Family Business Summit in Hong Kong. Photo: SCMP

His comment echoed those made by Bob Prince, co-chief investment officer at US hedge fund Bridgewater Associates. Prince said earlier that China offered a unique opportunity because its assets are less correlated with global markets.