Hong Kong stocks extend New Year run as Chinese telecom giants surge, WuXi Biologics slides on insider selling
- The Hang Seng Index rose 0.6 per cent, reversing from a 1.2 per cent loss, while the Shanghai Composite gained 0.7 per cent
- China’s three telecom giants surge after NYSE scrapped its delisting plan; WuXi chairman trims stake for a second time in four months
Hong Kong stocks rose for a second day as China’s biggest phone carriers surged after the New York Stock Exchange reversed its decision to delist their American depositary receipts. WuXi Biologics slid after its chairman trimmed his stake for a second time in four months.
China Unicom rallied 8.5 per cent to HK$4.85, pacing gainers among blue chips on the benchmark Hang Seng Index. China Mobile rose 5.1 per cent to HK$46.10 while China Telecom added 3.3 per cent to HK$2.16. The rally added HK$58.7 billion (US$7.56 billion) to their market value.
The US exchange backtracked after announcing on the eve of New Year a decision to remove the ADRs issued by the Chinese telecom giants from as soon this week to comply with President Donald Trump’s executive order.
“[The NYSE] should have gone through more detailed discussion before making the delisting decision,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai, adding that the reversal was a little surprising. “They should not easily change their mind.”
