Hong Kong stocks climb as gaming-hardware maker Razer soars on debut – South China Morning Post

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Hong Kong stocks began the morning higher on Monday as gaming-hardware maker Razer surged on its debut and technology stocks provided support.

The Hang Seng Index rose by as much as 0.47 per cent to 29,258.50 to touch a fresh 10-year high, while the Hang Seng China Enterprises index advanced 0.43 per cent, or 50.49 points, to 11,796.30.

“The stock market is being supported by big IPOs this week, and by the fact A shares remain in positive territory,” said Louis Tse Ming-kwong, a director of VC Brokerage in Hong Kong. “The strategy of brokers would be to avoid shorting the market ahead of the Christmas holidays.”

Razer, backed by Intel and Hong Kong’s wealthiest man Li Ka-shing, jumped 21 per cent to HK$4.71 from its IPO price of HK$3.88 on the debut of its US$528 million flotation.

Internet giant Tencent rose almost 1 per cent to HK$389.20.

Yixin Group, a Chinese online car-sales platform backed by Tencent, is scheduled to start trading on Thursday and has already locked in more than HK$382 billion in its IPO.

Apple supplier AAC Technologies jumped 5.25 per cent to a record high of HK$178.30, its sixth day of gains after a slew of analysts raised the target price in light of its earnings report.

Country Garden rose 7.82 per cent to HK$13.240 after it was announced late on Friday that the Chinese property developer is to be included as a component in the city’s benchmark index.

Smartphone lens maker Sunny Optical, which was also added to the Hang Seng Index, rose 3.34 per cent to HK$4.70.

But Hong Kong’s flagship carrier, Cathay Pacific, was removed from the famous benchmark after 31 years and fell 2.43 per cent to HK$12.04. Kunlun Energy fell 3.09 per cent, having also lost its status as an HSI component.

In the mainland, the Shanghai Composite Index rose 0.37 per cent, or 12.82 points, to 3,445.49 and the CSI 300 – which tracks the large caps listed in Shanghai and Shenzhen advanced 0.44 per cent, or 18.01 points, to 4,129.92.

However, the Shenzhen Composite Index lost 0.19 per cent, or 3.77 points, to 2,035.40 and the Nasdaq-style ChiNext shed 0.19 per cent, or 3.68 points, to 1,996.95.

The rise in Hong Kong’s stock market comes despite the fact Wall Street shares slipped on Friday after Senate Republicans released a tax plan that would postpone corporate tax cuts for a year, increasing concerns about President Trump’s ability to pass legislation.

The Dow Jones Industrial Average fell 0.17 per cent to 23,422.21, the S&P 500 dropped 0.09 per cent to 2,582.30, while the Nasdaq Composite edged up 0.01 per cent at 6,750.94.

Hong Kong-listed companies with American Depository Receipts (ADRs) in the US generally closed lower than their equivalent Hong Kong closing price. HSBC’s ADR closed at HK$75.829, below the HK$75.950 seen at the Hong Kong close, China Mobile closed at HK$80.296 below Hong Kong’s HK$80.300 and China Life’s ADR ended at HK$27.642 compared to HK$27.700. Sinopec’s ADR bucked the trend, finishing at HK$5.797, slightly above its Hong Kong closing price of HK$5.790.

Other Asian markets generally fell on Monday in early morning trade. Tokyo’s Nikkei 225 lost 0.82 per cent to 22,681.42, and South Korea’s Kospi dropped 0.3 per cent. However, the Sydney All Ordinaries rose 0.12 per cent.