Meituan, WH Group lift Hong Kong stocks as Premier Li calls for tonic to revive China’s stumbling economy
- Premier Li Keqiang called on key provinces to undertake more growth-friendly policies after recent signs of economic wobble
- Meituan recouped part of Tuesday’s 9.1 per cent slump while HKEX slumped after printing weaker-than-expected earnings reports
The Hang Seng Index added 0.5 per cent to 19,922.45 at the close of Wednesday trading. It slumped 1.1 per cent a day earlier. The Hang Seng Tech Index advanced 0.4 per cent, while the Shanghai Composite Index also rose by that much.
Meituan surged 3.3 per cent to HK$170 and pork-processing firm WH Group climbed 1.5 per cent to HK$5.51. Power tools maker Techtronic and China Resources Beer gained at least 3.9 per cent to HK$105.40 and HK$56 each. Alibaba Group Holding advanced 0.4 per cent to HK$90.35.
“Investors are overly pessimistic about Chinese stocks, which means there is the potential for positive surprise,” Kristina Hooper, a strategist at Invesco, said in a note on Wednesday. “The economic rebound will continue this year, and I still expect Chinese equities to claw back some of the losses from the first half, given the potential for policy support – both fiscal and monetary – if and when needed.”
