Hong Kong stocks cap best week in 2 months on China policy support
Hang Seng Index finishes the week 5.6 per cent higher – its best weekly performance since February 14
The Hang Seng Index dropped 0.6 per cent to 24,231.30 on Friday, but the benchmark still finished the week 5.6 per cent higher – its best performance for a five-day period since February 14. The Hang Seng Tech Index lost 0.5 per cent, paring the gain for the week to 8.4 per cent.
On the mainland, the CSI 300 Index and the Shanghai Composite Index both slipped 0.3 per cent.
Kuaishou Technology rose to a one-year high, jumping 4.8 per cent to HK$63.70 and Trip.com Group added 2.6 per cent to HK$511.50. Meituan advanced 1.8 per cent to HK$183.50 and Chinese sportswear maker Li Ning jumped 5 per cent to HK$18.66. JD Health International slumped 12.4 per cent to HK$35.75 after HSBC cut the rating to hold from buy.
The market has been resilient after China set a growth target of about 5 per cent this year and promised support for technology innovation led by the application of large language models in the government report delivered to the annual legislative National People’s Congress. A pullback in US stocks has also strengthened the trend of buying Chinese technology stocks that trade at a discount to the “Magnificent Seven” stocks in the US.
“The quickest gains may already be behind us,” said Zhang Jun, head of research at China Asset Management (Hong Kong). “But there’ll more stock-picking opportunities, as China’s economy picks up.”