HSI roars past 30,000 after one-day dip
Hong Kong stocks closed at above the 30,000 level yesterday, hitting 21-month-high, as mainland investors continued to buy into the market via the Stock Connect. The benchmark Hang Seng Index rose 711 points or 2.41 percent to close at 30,159 points. This came after a one-day dip last Friday, when...
Agencies and Winnie Lee
Tuesday, January 26, 2021
Hong Kong stocks closed at above the 30,000 level yesterday, hitting 21-month-high, as mainland investors continued to buy into the market via the Stock Connect.
The benchmark Hang Seng Index rose 711 points or 2.41 percent to close at 30,159 points. This came after a one-day dip last Friday, when the HSI ended nearly 480 points lower.
The mainboard turnover reached HK$286.91 billion, with a third coming from mainland capital. The net southbound inflow into Hong Kong stocks was HK$20.02 billion.
Along with the surge of HSI, Tencent (0700), Meituan (3690) and Hong Kong Exchanges and Clearing (0388) climbed to fresh highs.
Tencent surged 10.93 percent to HK$766.5 as Citigroup raised the target price of the tech giant to HK$876. Tencent contributed 345 points to the HSI and its market cap rose HK$724.3 billion in a single day.
Tencent's market cap rose to HK$7.35 trillion, equivalent to that of the six major state-owned banks. Tencent has become a prime target for mainland traders flooding record amounts of cash into Hong Kong-listed shares this year, with net purchase of the stock accounting for roughly a quarter of total money coming in.
The price of one Tencent contract - which bets the stock will rise past HK$800 by expiry - surged as much as 118,300 percent yesterday. Traders also rushed to offload their bearish puts, with one of the most-traded contracts losing some 84 percent in value.
Meituan closed 5.16 percent higher at HK$399.8 after hitting a new high of HK$407.60 in morning trading.
Hong Kong Exchanges and Clearing (0388) rose 8.33 percent to HK$553, Alibaba (9988) gained 2.95 percent to HK$258, and Xiaomi (1810) rose 2.52 percent to HK$30.55.
The Hang Seng Tech Index broke through 10,000 points for the first time, up 4.51 percent to 10,206.61.
JD.com (9618) hit a new high, up 6.13 percent at HK$387.6.
Three Chinese telecom giants underperformed. China Mobile (0941) fell 0.95 percent to HK$47.15, China Telecom (0728) fell 1.34 percent to HK$2.21, and China Union (0762) fell 3.35 percent to HK$4.61, the worst performer among blue-chips, down a fifth consecutive day.
Local developers were lower, with the pandemic remaining severe. CK Asset (1113) fell 1.23 percent to HK$40.25. Wharf Real Estate Investment (1997) was down 1.55 percent to HK$41.30.