HKEX soars 9.8pc as new-economy rally propels HSI

Business | Winnie Lee 22 Jul 2020

Stocks rallied in Hong Kong yesterday led by new economy shares after the announcement of a local version of the Nasdaq index and the rise of global tech stocks.

The Hang Seng Index jumped 577.67 points or 2.31 percent to 25,635.66 points.

Tencent (0700) shot up 7.94 percent to HK$564 and another tech giant Alibaba (9988) rose 7.26 percent to HK$257, even though India said it had identified them with alleged direct or indirect links with the People's Liberation Army and was preparing for actions to set restrictions.

Hong Kong Exchanges and Clearing (0388), the best performer among blue chips, surged 9.83 percent to HK$380, driven by the news that Ant Group is planning concurrent initial public offerings in Hong Kong and Shanghai.

Citibank said the new Hang Seng Tech Index, which will launch next Monday, will be beneficial to technology shares and Hong Kong Exchanges and Clearing.

It could be another flagship stock index and there will be more index-tracking products, added Citibank.

However, mainland banks retreated with Bank of Communications (3328) falling 1.55 percent to HK$4.44, the biggest blue-chip loser. Bank of China (3988) dipped 0.72 percent to HK$2.76 and the Industrial and Commercial Bank of China (1398) was down 1.23 percent to HK$4.81.

HSI night futures were flat as of 9.30pm yesterday.

In mainland China, the Shanghai Stock Exchange Composite Index closed flat at 3,320.90 while the Shenzhen Stock Exchange Composite Index finished higher by 0.72 percent at 2,232.

The Shanghai Stock Exchange is mulling new rules to woo more investors to the Star Market, said Que Bo, SSE executive vice president.

In the United States, the S&P 500 was up in early trading, with Amazon up 0.94 percent. Meanwhile, Euro Stoxx 50 was up 1.07 percent as of 9.30pm after European Union leaders reached a historic deal on a massive stimulus plan for their coronavirus-hit economies.

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