Hong Kong stocks rise on China export growth; Alibaba rallies

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Hong Kong stocks edged up on an Alibaba rally and strong export data from China, while mainland developers tumbled

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Outside Hong Kong’s stock exchange. Photo: SCMP/Jonathan Wong

Jiaxing Li

Published: 10:29am, 10 Sep 2024Updated: 4:43pm, 10 Sep 2024

Hong Kong stocks edged higher, reversing earlier losses, thanks to a rally from Alibaba and stronger-than-expected export data out of China.

The Hang Seng Index added 0.2 per cent at 17,234.09 on Tuesday, after losing as much as 0.4 per cent in earlier trading, to climb out from a three-week low. The Tech Index added 0.4 per cent, while the Shanghai Composite Index added 0.3 per cent to claw out of an eight-month low.

Alibaba jumped 4.2 per cent to HK$81.60 after exchanges in Shanghai and Shenzhen admitted it to the Stock Connect scheme. Macau casino operator Sands China rallied 3.4 per cent to HK$13.88 and rival Galaxy Entertainment gained 0.7 per cent to HK$28.90. EV maker Li Auto jumped 6.3 per cent to HK$76.40.

Limiting gains, drug maker Wuxi Biologics lost 3.9 per cent to HK$10.90 and affiliate Wuxi Apptec lost 10.4 per cent to HK$32.20, after the US House of Representatives passed a bill that would restrict business with certain targeted Chinese biotech companies, based on national security grounds. Tencent weakened 0.7 per cent to HK$368.60 and NetEase lost 1 per cent to HK$120.

Markets rose Tuesday after the latest customs data showed China’s exports unexpectedly gathered steam in August. Export growth jumped to 8.7 per cent in August from 7 per cent in July, beating a forecast for 6.6 per cent and marking the fastest pace since March 2023.

Meanwhile, imports rose by 0.5 per cent – versus a 2.5 per cent estimate and 7.2 per cent growth in July – as domestic demand remains soft.