my NEWS Hong Kong stocks surge by most in 3 weeks as Chinese market regulators’ promise of support lifts sentiment Stocks were also boosted by an overnight rally in US shares amid expectations that tech companies will deliver strong earnings results Traders will be keeping close tabs on corporate results as seven companies on the Hang Seng Index including Ping An Insurance Group prepare to report The Hang Seng Index rose 1.9 per cent to 16,828.93 at the close on Tuesday, its steepest gain since April 2 to extend a 1.8 per cent gain a day earlier. The Hang Seng Tech Index surged 3.4 per cent and the Shanghai Composite Index retreated 0.7 per cent. Pork processing giant WH Group jumped 5.8 per cent to HK$5.80 after announcing its operating profit increased 37 per cent in the first quarter. Sportswear maker Li Ning advanced 5.7 per cent to HK$18.50 after a business update showed growth in retail and e-commerce sales in the first quarter. The Hang Seng Index has dropped by 1.3 per cent this year after a record run of four straight annual declines. “Under the policy support for the Hong Kong market, southbound capital will keep flowing into the Hong Kong market,” said Huang Kaihong, an analyst at Guotai Junan Securities in Hong Kong. “That will strengthen [mainland investors’] pricing power in the Hong Kong market and boost its stability and rationality.” Chinese onshore traders bought HK$2.34 billion (US$298.6 million) of Hong Kong stocks through the southbound investment channel of the Stock Connect scheme on Tuesday morning, a 17th straight day of net buying, according to Bloomberg data. Stocks were also boosted by an overnight rally in US shares amid expectations that tech companies will deliver strong earnings results. Traders will be keeping close tabs on corporate results, with the earnings season in full swing. Seven companies on the Hang Seng Index including Ping An Insurance Group and Hong Kong Exchanges and Clearing, which operates the bourse, are due to release their report cards this week. Elsewhere, e-commerce company JD.com surged 6.1 per cent to HK$106.60. Tencent Holdings strengthened by 3.1 per cent to HK$330.20 and Meituan added 8 per cent to HK$108.60. Two companies started trading in the city on Tuesday. Sichuan Baicha Baidao Industrial, a bubble tea maker and the city’s biggest initial public offering this year, slumped 27 per cent to HK$12.80. Tianjin Construction Development Group tumbled 39 per cent to HK$1.52. Other major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.3 per cent and Australia’s S&P/ASX 200 added 0.5 per cent, while South Korea’s Kospi slipped 0.2 per cent.
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