18 August 2019

HSI finds strength in new energy sector

Hong Kong’s benchmark Hang Seng Index (HSI) continued its winning streak Thursday as investors piled into sectors expecting to receive Beijing’s policy blessing during the National People’s Congress and the Chinese People’s Political Consultative Conference.

The HSI gained 123 points, or 0.55 percent, to end at 22,702. The Hang Seng China Enterprises Index, the main gauge for H shares, rose 0.11 percent to finish at 9,672. The Shanghai Composite Index also added 0.32 percent to close at 2,059 points.

Most blue chips rose for the day, including tech behemoth Tencent (00700.HK), which gained 2 percent after Nomura Securities raised its target price to HK$750. Nomura’s assessment of Tencent is the highest among the brokerages.

New energy also gained investors’ love, with wind and solar power players ending higher for the day. Xinjiang Goldwind Science and Technology (02208.HK) closed over 7 percent higher, and China High Speed Transmission Equipment (00658.HK) was up nearly 10 percent.

The sun shone on the solar plays for a second day in a row. China Singyes Solar Technologies (00750.HK) added another 5.7 percent to reach a new peak after rising over 11 percent Wednesday. GCL-Poly Energy (03800.HK) also ended 5.2 percent higher.

Shipping companies have made significant gains since the Baltic Dry Index, a key gauge of worldwide shipping costs, climbed 5 percent Wednesday. COSCO Pacific (01199.HK) rose 6.5 percent to become the day’s best performing blue chip, while other players like China Merchants Holdings International (00144.HK) and Sinotrans gained at least 3.3 percent.

Meanwhile, CITIC 21CN (00241.HK) continued to ride high on Thursday after jumping 15.8 percent the day before. The counter has risen by about half in the last two trading sessions.

Art auction house Poly Culture Group (03636.HK) kicked off its initial public offering on a high note Thursday. The counter shot up 29 percent above its offering price and its transaction volume reached HK$2.7 billion, closely behind Tencent.

– Contact the writer at [email protected]


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