Hang Seng Index flirts with 20,000

Staff reporter

The Hang Seng Index may be able to close at 20,000 this year after jumping 518.73 points yesterday on hopes of China further reopening its borders.

Hong Kong's benchmark stock index closed at 19,679 yesterday, only 321 points from 20,000 with four trading days left this year.

Turnover was HK$101.47 billion, 46 percent higher than on Wednesday.

However, the index is down15.45 percent, or 3,595 points, since the first trading day of 2022.

Tech firms were the main drivers. Meituan (3690) jumped 6.89 percent to HK$186.2, while Tencent (0700), rose 4.12 percent to HK$323.8 and was the most traded stock.

Still, Tencent has slumped 28.65 percent this year, Meituan is down 16.65 percent while Xiaomi (1810) seen the biggest decline of 40.75 percent among the tech giants.

Consumption stocks benefited amid expectations that Beijing will further ease its border controls. Hotpot restaurant chain Haidilao International (6862) was the best blue-chip performer, rising 7.61 percent to HK$21.5.

Electric vehicle makers fared well as XPeng (9868) led with an 11.2 percent rise. Nio (9866) rose 4.46 percent ahead of the launch of a new model tomorrow, while BYD (1211) inched up 1.77 percent to HK$201.6.

However, they've all posted a loss for this year, with XPeng down 76.81 percent and BYD by 24.38 percent.

Mainland developers gained as China encouraged property developers to seek backdoor listings.

Ronshine China (3301) surged 11 percent to HK$1.11 while CIFI (0884) rose 3.64 percent to HK$1.14. But they still nosedived 64 percent and 73.49 percent this year respectively.

AIA (1299) bought back 2.65 million shares for about HK$225 million yesterday, after edging down 0.47 percent to HK$83.9.

With only four trading days left, it may be possible for the HSI to reach 20,000 points, said Francis Kwok Sze-chi, the vice chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators.

Kwok expects blue-chip tech shares to rise slightly over the remaining trading days, in addition to HSBC (0005) and Hong Kong Exchanges and Clearing (0388).

He also believes the increase will be mild, as there will be no new measures from Beijing with the year-end around the corner, and transactions will remain sluggish over the festive season.