Hong Kong stocks gain on earnings outlook as Meituan outperforms consensus
Hong Kong
stocks gained after a government report showed growth in profits for Chinese companies accelerated, underpinning efforts by global investors to diversify their investments away from the US amid global trade turmoil.
The Hang Seng Index rose 0.2 per cent to 23,310.90 at 9.56am local time on Tuesday. The Hang Seng Tech Index gained 0.1 per cent. On the mainland, the CSI 300 Index slipped 0.1 per cent while the Shanghai Composite Index added 0.1 per cent.
Meituan added 0.2 per cent to HK$129.60 after its first-quarter revenue and earnings exceeded consensus estimates. Alibaba Health rallied 1.8 per cent to HK$4.48 and Wuxi Biologics jumped 3 per cent to HK$23.80, while Anta Sports climbed 2.6 per cent to HK$94.65.
Limiting gains, e-commerce platform operator JD.com slid 3.2 per cent to HK$125.50 while BYD declined 1.5 per cent to HK$419 amid concerns about margins amid intensifying competition in their businesses.
Industrial profits in mainland China grew at an annual pace of 3 per cent in April, versus 2.6 per cent in March, the statistics bureau said on Tuesday. The report indicated resilience among local businesses, even after US President Donald Trump unveiled on April 2 his so-called reciprocal tariffs on almost all the nation's trading partners.
Investment banks including JPMorgan Chase and UBS Group said global investors were interested in Chinese stocks traded in Hong Kong given their valuation edge and amid buying support from mainland-based funds.
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