Hong Kong tech stocks gain as Ant Group files for dual IPO that could mark the world’s biggest fundraising ever
- Three stocks to be added to Hang Seng Index – Alibaba, Xiaomi, Wuxi Biologics – all rise
- Coronavirus remains a drag on sentiment
The month-old tech board of Hong Kong’s 30 largest technology companies rose 0.7 per cent.
A number of other tech stocks did well on excitement about Ant Group’s mega listing, which is expected to surpass Saudi Aramco’s US$29.4 billion initial public offering (IPO) in December as the world’s largest fundraising ever. Online games giant NetEase advanced 4.2 per cent. E-commerce titan JD.com shot up 6 per cent, sending its relative strength index to 82, with a level of 70 warning a stock may be overbought.
“After Ant released their prospectus yesterday, all the market focus was on their listing, boosting up the whole sector valuation, leaving more room for Ant to rise after listing,” said Alan Li, portfolio manager at Ample Capital.
The Hang Seng Index see-sawed between small gains and losses, and finished with a teensy gain at 25,491.79. The benchmark was trying again to close above 25,500, which it did on Monday for the first time in about five weeks. The resistance level has been stubborn.
