Hong Kong stocks gain on earnings outlook as Meituan beats consensus
Gains limited by losses in leading carmakers amid lingering concerns about a prolonged price war
The Hang Seng Index rose 0.4 per cent to 23,381.99 on Tuesday. The Hang Seng Tech Index added 0.5 per cent. On the mainland, the CSI 300 Index slipped 0.5 per cent while the Shanghai Composite Index declined 0.2 per cent.
Meituan rallied 2.1 per cent to HK$132.10 after revenue and profit in the first quarter topped consensus estimates despite tougher competition. Alibaba Group Holding added 0.9 per cent to HK$118 and Tencent Holdings rose 0.4 per cent to HK$512. Smartphone maker Xiaomi added 0.5 per cent to HK$51.55 and Kuaishou Technology also gained 0.5 per cent to HK$48.75 before their report cards later this week.
“There’s room for a further recovery in the Chinese assets, with expectations for China’s growth improving as pressure on exports eased,” said Eva Yi, an analyst at Huatai Securities in Hong Kong. “We are positive on the relative performance of Hong Kong stocks against other markets globally.”
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China, US slash most tariffs on each other after first round of trade talks
Stocks fell earlier, with BYD and its car-manufacturing peers like Geely Auto and sliding by about 1.6 per cent amid concerns over a prolonged price war. Investors are banking on more recovery signs in China to propel further equity gains.