24 March 2019

Investors pile back into old-economy stocks, leading HSI higher

Hong Kong stocks tracked their mainland counterparts higher Tuesday, ahead of key economic data due out this week.

The benchmark Hang Seng Index climbed 219 points, or 0.98 percent, to finish at 22,596. The Hang Seng China Enterprises Index, the main gauge for H shares, added 1.62 percent to 10,321.

The Shanghai Composite Index and the Shenzhen Component Index picked up more than 1.9 percent as trading resumed after Monday’s Ching Ming Festival holiday.

The government will release key statistics on Thursday and Friday, which are expected to show that the economy stabilized in March. These include exports and imports, the consumer price index and producer price index.

Also, it may announce a further stimulus to sustain the momentum.

Funds piled back into traditional industries including property, brokerages and banks. Country Garden (02007.HK) surged 5.3 percent while Industrial and Commercial Bank of China (01398.HK), Bank of Communications (03328.HK) and China Construction Bank (00939.HK) closed more than 2 percent higher.

Meanwhile, new-economy plays stabilized after days of retreat. Tencent (00700.HK) bounced back 1.6 percent after tumbling 4.5 percent in the previous session after the group bought back shares for the first time in more than a year.

China Resources Power (00836.HK) gained 5.1 percent to become the day’s best performer after reports that households in Yunan could directly buy electricity from power plants, indicating a major step in China’s efforts to create a market-driven electricity regime.

– Contact the writer at [email protected]


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