Hong Kong Stocks Rebound, Paring World's Biggest Equity Slump
(Bloomberg) -- Stocks in Hong Kong rose, led by technology and financial companies, as investors took courage from the global equity rebound.
The Hang Seng Index climbed 1.3 percent, trimming an earlier gain of 2.4 percent, while a gauge of Chinese shares traded in the city rose for the first time in seven days. Hong Kong and China stocks bore the brunt of the recent selloff, with both indexes still down more than 9 percent this month, the most among global benchmarks. The Shanghai Composite Index added 1 percent Tuesday, paring its February loss to 8.5 percent.
“The focus of the market will shift to earnings results after Chinese New Year and that will determine the future trend of the Hong Kong stocks,” said Banny Lam, head of research at CEB International Investment Corp.
Hong Kong markets will be closed Friday and Monday for holidays, while mainland bourses shut for a week from Thursday. Sunny Optical Technology Group Co. led gains on the Hong Kong benchmark, jumping 5.7 percent after saying 2017 net income probably more than doubled from a year earlier. Ping An Insurance Group Co. climbed 3.7 percent after sinking 13 percent last week.
- Turnover in mainland equities fell to 343 billion yuan, the lowest since Dec. 22. Hong Kong’s turnover dropped to HK$129 billion, the least since Jan. 5
- Financial firms rallied after being among the hardest-hit H shares this month; Ping An Insurance advanced the most since Jan. 2 after reporting January premium income, while Citic Securities Co. added 2.1%
- Bank of China Ltd., Industrial & Commercial Bank of China Ltd. and China Merchants Bank Co. all rose more than 1 percent in Hong Kong
- China Shenhua Energy Co. gained 0.7% after saying January coal sales increased 6% year-on-year; the stock slid 16 percent last week
- Tencent Holdings Ltd. climbed 3.1 percent for its biggest gain in three weeks; the tech heavyweight lost 10 percent last week and 4 percent the week before
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