Hong Kong stocks approach 3-week high as Nongfu, SMIC surge amid bullish China data
Latest reports showed China’s services sector and manufacturing activity expanded in October after Beijing’s stimulus blitz
The Hang Seng Index advanced 2.1 per cent to 21,006.97 on Tuesday, the highest close since October 18. The Tech Index jumped 3.6 per cent. The CSI 300 Index of onshore stocks climbed 2.5 per cent to near a three-week high, while the Shanghai Composite Index strengthened 2.3 per cent.
Bottled water producer Nongfu Spring surged 9.6 per cent to HK$33.25 and China’s biggest chipmaker SMIC jumped 6.4 per cent to HK$27.50. Mainland property developers also rallied, as China Overseas Land and Investments gained 2.9 per cent to HK$15.66 and Longfor Group rose 3.8 per cent to HK$13.60.
“Investors are hopeful that China will continue to support market development in some policy aspects,” said Kenny Ng, a strategist at Everbright Securities. “As the policies target domestic consumption and the real estate sector, these will be the key direction of fund deployments.”
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Other notable gainers include iPhone camera lens maker Sunny Optical, which soared 14.3 per cent to HK$56.25. Fast-food chain operator Yum China rallied 7 per cent to HK$385.80 after its third-quarter earnings beat market expectations and Nomura raised its price target to HK$415 from HK$365.82.
