Hong Kong stocks cap longest winning streak in 4 weeks; HSBC rallies to 6-year high

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HSBC rose to six-year high after quarterly profit beat analysts’ estimates, helping lift Hang Seng Index in longest winning streak in four weeks

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Zhang Shidongin Shanghai

Published: 10:23am, 29 Oct 2024Updated: 4:36pm, 29 Oct 2024

Hong Kong stocks rose for a third day, with the benchmark capping its longest winning streak in four weeks, after better-than-expected results from HSBC Holdings and Wuxi AppTec spurred optimism about the outlook for corporate earnings.

The Hang Seng Index advanced 0.5 per cent to 20,701.14 at the close, registering a three-day, 1 per cent gain. HSBC climbed to a six-year high and biopharmaceutical firm Wuxi AppTec rose after reporting third-quarter revenue that beat analysts’ estimates. The Hang Seng Tech Index added 1.1 per cent.

Mainland stock benchmarks were down; the CSI 300 Index fell 1 per cent and the Shanghai Composite Index lost 1.1 per cent.

Beyond corporate earnings, traders are gearing up for a meeting of the National People’s Congress Standing Committee that is due by next week. The participants are expected to approve fiscal stimulus measures that are eagerly anticipated by the market. Hong Kong and mainland markets have added as much as about US$4 trillion in market capitalisation since late September – making them the best performers among the world’s major benchmarks – after policymakers in China unveiled measures aimed at reviving economic growth.

“China is very likely to boost its fiscal support for growth and incremental policies are on the way,” said Shen Fanchao, an analyst at Zheshang International in Hong Kong. “The government has reiterated on many occasions [its goal] to achieve the growth target this year. All this will lift market sentiment.”

HSBC gained 3.7 per cent to HK$71.60 for its highest close since August 2018; it was the best performer from the Hang Seng Index. The bank said net profit rose 9 per cent year-on-year to US$6.13 billion under international accounting rules in the third quarter, exceeding market forecasts for the first time in a year. It also unveiled a US$3 billion stock repurchase plan.