Bargain hunters lift Hong Kong stocks off 10-month lows as China data cheers investors with Alibaba’s shares rising on Cainiao’s IPO plan
Industrial profit for Chinese firms recorded the first gain this year in August, according to the statistics bureauAlibaba Group rallied after its logistic unit Cainiao applied for an initial public offering in Hong KongHong Kong stock marketZhang Shidongin ShanghaiPublished: 10:39am, 27 Sep, 2023Why you can trust SCMP
The Hang Seng Index rose 0.8 per cent to 17,611.87 at the close, after finishing a day earlier at its lowest since November 28. The Hang Seng Tech Index advanced by 0.4 per cent while the Shanghai Composite Index added 0.2 per cent.
Alibaba Group Holding climbed 0.7 per cent to HK$84.50 after its delivery unit Cainiao Smart Logistics Network applied for an initial public offering in Hong Kong. The Hangzhou-based logistics company is aiming to raise at least US$1 billion, according to people familiar with the matter, which would make it the world’s second-largest stock offering this year. Its affiliate, Alibaba Pictures Group, advanced 5.3 per cent to HK$0.60.
Hansoh Pharmaceutical Group rallied 4.3 per cent to HK$10.78 and Wuxi Biologics gained 3.7 per cent, to HK$44.55. China Merchants Bank added 1.9 per cent to HK$32.45 and JD.com rose 1 per cent to HK$113.40.
“We expect the economic data recovery to continue in the next few months with all the government supportive measures starting to show effects,” said Chris Liu, a portfolio manager at Invesco. “However, there are still some structural problems that need to be resolved such as the local government debt issues.”