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Hong Kong, China stocks boosted by Nongfu Spring debut, rise amid Trump threat to scale back economic ties, tech stocks correction

  • The Hang Seng Index rose by 0.1 per cent on Tuesday
  • Shanghai Composite gains 0.7 per cent to 3,316.42

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Hong Kong’s Central business district. Investors were trying to shake off the recent rout in technology stocks on Tuesday. Photo: AFP
Martin Choi

Hong Kong and China stocks gained on Tuesday, after Chinese water bottler Nongfu Spring’s stellar trading debut offset a correction in technology stocks as well as a threat by US President Donald Trump to scale back economic ties between the United States and China.

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In Hong Kong, the Hang Seng Index edged up 0.1 per cent to 24,624.34, while the CSI300 index, which tracks the performance of the top 300 stocks on the Shanghai and Shenzhen exchanges, gained 0.5 per cent to 4,694.39. On the mainland, the Shanghai Composite Index gained 0.7 per cent to 3,316.42 at the close.

Shares of Nongfu Spring, the hottest IPO in Hong Kong’s financial history, soared by as much as 85 per cent to HK$39.85 from their initial public offering (IPO) price of HK$21.50 on Tuesday morning. The company’s retail shares were overbought by a record 1,147 times, and locked up HK$677 billion (US$87 billion) in capital. The stock ended the day 54 per cent higher, at HK$33.10.

“Nongfu Spring’s IPO helped [market sentiment] a bit, allowing some of the liquidity that had been stored away to flow back into the markets,” said Stanley Chan, director of research at Emperor Securities. “But the overall sentiment around technology stocks still remains weak.”

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The two-month-old Hang Seng Tech Index of the top 30 technology stocks fell 1.6 per cent on Tuesday. It had risen by as much as 1.2 per cent in early trading after three consecutive days of declines.

Chinese software firm Kingsoft dropped 5.6 per cent, while smartphone maker Xiaomi fell 7.2 per cent.

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