Hong Kong stocks maintain over four-month high at noon

Hong Kong stocks rose 2 percent as of midday, as investment banks remain bullish on China’s tech sector.

The benchmark Hang Seng Index stood at 23,080 points by noon, 2.05 percent or 464 points higher than the previous close, with a half-day main board turnover of HK$175.9 billion.

The blue-chip index once hit 23,093 points in the morning, a fresh high for more than four months.

The Hang Seng Tech Index extended its rally by 3.04 percent and ended the early trade hours at 5,666 points.

Citibank believes the meeting of China’s President Xi Jinping with prominent mainland entrepreneurs including Alibaba’s (9988) Jack Ma Yun and Tencent’s (0700) Pony Ma Huateng would support the valuation of the country’s internet industry.

BOC International raised Xiaomi’s (1810) earnings forecast by 2.39 percent for this year and its target share price to HK$58.20.

The smartphone and electric vehicle maker posted a half-day rise of 5.5 percent to HK$47.65 apiece.

In mainland China, the Shanghai Composite Index closed at 3,365 points at midday, up by nine points or 0.29 percent, while the Shenzhen Component Index inched up 13 points or 0.13 percent to 10,804 points.

STAFF REPORTER