HSI bounces back as Alibaba gets a thumbs up

Business | Winnie Lee 26 Feb 2021

Hong Kong stocks rebounded above 30,000 yesterday, with Alibaba (9988) rising 0.25 percent after President Xi Jinping praised Alibaba, and shares of mainland developers also jumped.

The benchmark Hang Seng Index was up 1.2 percent or 355 points to 30,074 after a slump on Wednesday. Among blue chips, Alibaba edged up to HK$243.4 as Xi said internet enterprise Alibaba had contributed to the mainland's ending of poverty.

In the past eight years, Alibaba's sales of agricultural products reached 1 trillion yuan (HK$1.2 trillion) while over the past three years, online sales were worth more than 270 billion yuan across 832 poor counties in the mainland.

Shares of mainland developers rose as 22 major cities followed the centralized land supply policy by transferring together and selling land by auction no more than three time in a year. Cities included Nanjing, Suzhou and Hangzhou.

Guangzhou-based KWG Group (1813) skyrocketed 23.7 percent. Sunac China (1918) surged 12.4 percent. China Resources Land (1109) was up 11.2 percent, the best performer among blue-chip shares. Seazen (1030), China Vanke (2202), Yuexiu Property (0123) and C&D International Investment (1908) hit a new high, rising 4.8 to 16.5 percent.

Mainland property managers also grew, with S-Enjoy Service (1755) rising 11.1 percent, Evergrande Property Services (6666) going up 7.3 percent and Sunac Services (1516) up 6.5 percent.

Hong Kong Exchanges and Clearing (0388) continued to fall, down 1.77 percent to HK$500, after financial professionals and insiders criticized the 30 percent increase in stamp duty on stock transactions. The Secretary of Financial Services and the Treasury Bureau, Christopher Hui Ching-yu, said the government planned to raise the stamp duty on stock transactions in August and there was no "plan B."

The Hang Seng Tech Index ended its five-day drop, rising 1.5 percent to 9,496 points.

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