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Alibaba surge leads Hong Kong stocks to biggest gain in 2 weeks
Hong Kong stocks are undervalued, and a ‘liquidity friendly environment’ is set to propel them higher, analyst says
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Hong Kong stocks rose by the most in more than two weeks on Monday, as a catch-up with last month’s decade high on mainland markets played out and Alibaba Group Holding surged by the most in more than three years.
The Hang Seng Index rallied 2.2 per cent to 25,617.42 at the close, registering the biggest advance since August 13. The Hang Seng Tech Index also gained 2.2 per cent.
Mainland stocks continued their solid run, with the CSI 300 Index rising 0.6 per cent and the Shanghai Composite Index adding 0.5 per cent. The stock market regulator gave an endorsement of the rally despite some signs of overheating. In a meeting with scholars and market professionals last week, Wu Qing, chairman of the China Securities Regulatory Commission, said that the stabilisation and uptrend in the stock markets would need to be further entrenched.
Alibaba, the third-biggest stock on the Hang Seng Index with a 7.7 per cent weighting, jumped 19 per cent to HK$137.10 after profit for the quarter to June surged 78 per cent from a year earlier on increased investment gains and asset disposals. The e-commerce behemoth delivered its best single-day performance since March 16, 2022, when the stock jumped 27 per cent, as investors focused on bright prospects for its food delivery and artificial intelligence businesses.
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