Hong Kong stocks extend from 3-year high on China growth optimism
stocks kicked off the week's trading on a strong note on Monday, with the benchmark extending the gain from a
three-year high on Friday as optimism about the resilience of China's growth and the risk-on mood in global stocks boosted sentiment.
The Hang Seng Index rose 0.3 per cent to 24,899.49 as of 10.04am local time, heading for the highest close since January 21, 2022. The Hang Seng Tech Index gained 0.4 per cent. The city's financial markets opened for trading despite the aftermath of Typhoon Wipha on Sunday, which triggered the highest warning signal, injured dozens of people and halted flights.
On the mainland, the CSI 300 Index climbed 0.3 per cent, and the Shanghai Composite Index added 0.4 per cent.
Meituan rallied 4.2 per cent to HK$132.70, and Alibaba Group Holding gained 2.2 per cent to HK$118.30. PetroChina advanced 3.1 per cent to HK$4.48, and Sinopec added 3.2 per cent to HK$4.47.
Investors moved on from uncertainty over tariff talks between the US and its global trading partners, as China reported faster-than-expected 5.3 per cent economic growth in the second quarter, aligning with its full-year growth target of around 5 per cent. US stocks closed at record highs last week, as the Goldilocks scenario took hold after official data showed robust retail sales and cooling inflation.
China's central bank left the one-year and five-year prime loan rates unchanged for this month, indicating the economic recovery could still have legs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
29 minutes ago
- South China Morning Post
Regulatory changes have built momentum in Hong Kong IPOs
Hong Kong stock exchange (HKEX) reported a surge in IPO activity in the first quarter of the year, with 17 new listings attracting a total of HK$18.7 billion (US$2.38 billion), nearly quadrupling year-on-year figures. The growth follows regulatory reforms implemented in 2024 that helped the city strengthen its role as a global financial hub. 'The Hong Kong IPO market has picked up its momentum after a slowdown in previous years,' said Edward Au, southern region managing partner for Deloitte China. 'We have expanded our forecast for the Hong Kong IPO market in 2025, expecting around 80 listings to raise approximately HK$200 billion over the year if the market situation continues to be conducive.' Hong Kong's capital market overhaul comes at a time when global financial hubs are competing more fiercely than ever, with sustainable investments gaining significant traction. Au said that the government's 2025-26 Budget builds on this momentum, proposing further reforms to optimise primary and secondary listing thresholds, and streamline post-listing obligations. 'These changes, if implemented promptly, could lower the entry barriers for high-quality overseas issuers and enhance certainty in the listing journey,' he said. Edward Au, southern region managing partner, Deloitte China. Photo: Handout Miguel Latorre, managing director of consulting firm Acclime, described the changes to Chapter 18C for specialist technology companies and the Technology Enterprises Channel as 'definitely a step in the right direction'. 'It sends a clear signal that Hong Kong wants to support innovation and align itself with global environmental, social and governance (ESG) capital flows,' said Latorre. 'By allowing earlier-stage, R&D-heavy companies – especially in green tech – to list before reaching profitability, it lowers a big barrier for companies building long-term solutions.' According to Au, current market momentum has been driven by several key factors. 'We observed a sustained inflow of funds, spurred by renewed global interest in China-related opportunities, particularly in AI and innovation,' he said. Mainland Chinese investors are increasingly participating as they enhance their offshore portfolios, while 'relatively modest' IPO pricing has helped maintain investor interest, he added. The robust pipeline reflects the momentum. Au revealed that HKEX was processing over 170 active IPO applications as of June 18 – a figure that excludes both confidential submissions under the new pathway for specialist technology and biotech companies, as well as secondary listing applicants.
South China Morning Post
29 minutes ago
- South China Morning Post
Has the Qianfan satellite network – China's Starlink rival – run into trouble?
A Chinese mega-constellation of communications satellites is facing serious delays that could jeopardise its ambitions to compete with SpaceX's Starlink for valuable orbital resources. Only 90 satellites have been launched into low Earth orbit for the Qianfan broadband network – also known as the Thousand Sails Constellation or G60 Starlink – well short of the project's goal of 648 by the end of this year. Under international regulations to prevent spectrum hoarding, satellite operators must deploy a certain proportion of their constellation within set times after securing orbits and radio frequencies. Shanghai Yuanxin Satellite Technology, the company leading the project, plans to deploy more than 15,000 satellites by 2030 to deliver direct-to-phone internet services worldwide. To stay on track, Yuanxin – which is backed by the Shanghai municipal government – would have to launch more than 30 satellites a month to achieve its milestones of 648 by the end of 2025 for regional coverage and 1,296 two years later for global connectivity. At the heart of the delay is a severe shortage of rockets, as China's manufacturing and launch capacity struggle to keep pace with the explosive demand for satellite deployment, according to a rocket engineer based in Beijing.
South China Morning Post
3 hours ago
- South China Morning Post
Washington China hawks slam US approval of H20 chip sales
Washington China hawks are slamming the approval by US President Donald Trump's administration of resumption of the sale of Nvidia's downgraded H20 AI chip to China, questioning the move's rationale and whether it was part of the June London trade deal between the two countries, as the administration claims. Trump banned the sale of the Nvidia chip, designed to avoid export control restrictions imposed by President Joe Biden's administration, in April as the trade war between the two global powers escalated. The decision was rescinded this month after Trump met with Nvidia chief Jensen Huang before leaving for China. China and the US agreed in the June deal on the easing of some US export controls in exchange for access to Chinese rare earth minerals. US Commerce Secretary Howard Lutnick, who was part of the London negotiation team, told CNBC in an on July 15 that the H20 chip was put 'in the trade deal with the magnets'. 'We don't sell them our best stuff, not our second best stuff, not even our third best. The fourth one down, we want to keep China using it,' he said, adding, 'you want to sell the Chinese enough that their developers get addicted to the American technology stack.' The same day, Treasury Secretary Scott Bessent told Bloomberg the H20 sale resumption 'was all part of a mosaic'. Bessent had told US lawmakers in June there was 'no quid pro quo' involving chips in exchange for rare earths. The Treasury Department did not respond a request for comment on the apparent inconsistency.
