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Hong Kong stocks complete second weekly gain on China stimulus bets while Chow Tai Fook rallies on special dividend

  • Hang Seng Index finished the week with the biggest advance in more than two months amid speculation China will inject stimulus to revive recovery
  • Chow Tai Fook Jewellery surged by the most since May 4 after proposing a special dividend to reward investors

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A man stands on the street in front of the large screen showing stock exchange data in Shanghai in January 2023.Photo: EPA-EFE
Jiaxing Li
Most Hong Kong stocks logged a second winning week after a report showing tame inflation stoked bets policymakers in Beijing will ease policies to shore up economic recovery. Chow Tai Fook Jewellery surged by the most in a month on special dividends.
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The Hang Seng Index rose 0.5 per cent to a near a two-week high of 19,389.95 at the closing of Friday trading. The index chalked up 2.3 per cent of gain for the week, the most since May 4. The Tech Index lost gained 1 per cent, while the Shanghai Composite Index climbed 0.6 per cent.

Meituan jumped 2.2 per cent to HK$127.10, Alibaba Group strengthened 0.7 per cent to HK$83.90 and Tencent added 0.4 per cent to HK$336. EV maker BYD gained 1.4 per cent to HK$251.20 and peer Geely Auto climbed 1.5 per cent to HK$9.54 after China announced a nationwide campaign to boost auto sales.

Chow Tai Fook, controlled by Hong Kong’s third-richest family, rallied 3.6 per cent to HK$14.30 after proposing to pay HK$0.72 per share in special dividend. Revenue in the second-half trailed consensus estimates, it reported on Thursday, while same-store growth outlook disappointed markets.

“Any stimulus or rate cuts may provide a catalyst for the Chinese economy to surprise to the upside,” said Aaron Costello, regional head for Asia at Cambridge Associates, even though the rescue package “is likely to be modest,” he added.

Investors are banking on China to shore up recovery and help reverse fund outflows after steep market losses in April and May. Foreign funds have sold 8.2 billion yuan (US$1 billion) of onshore stocks this quarter through Friday, paring the US$27 billion net purchases in the first quarter.

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