Hong Kong’s Hang Seng Index rises after two straight weeks of gains, as traders set aside coronavirus jitters
- Hong Kong kicks off second week of newborn bull market
- Chinese media outlet warns investors against getting too giddy about hot stock markets – but tech-heavy Shenzhen Composite Index soars 3.5 per cent
Hong Kong stocks advanced, with car makers surging, while mainland shares soared as “fear of missing out” and expectations of China’s recovery drove sentiment despite growing concerns the mainland markets are overheated.
High turnover stocks were Tencent, China’s social media and online gaming giant, which finished down 1 per cent to HK$541, and Alibaba, the country’s e-commerce titan and the owner of the South China Morning Post, which slipped 0.4 per cent to HK$254.40.
Daiwa Capital Markets reiterated its buy “rating” on Alibaba and boosted the 12-month target price to HK$294 from HK$260, or a 15.1 per cent jump from Friday’s close. Analyst John Choi said he expects Alibaba will post a “solid” quarter, with its revenue growing 30 per cent year-on-year when it reports next month.
Geely Automobile shot up 8.3 per cent, while BYD jumped 16.2 per cent. Great Wall Motor soared 5.5 per cent to HK$6.70, as Jefferies reiterated the stock as a “buy” on strong sales in June – 30 per cent year-on-year growth – and boosted the target price to HK$9.20 from $HK6.70.
