Hong Kong Market rises on bargain buying, calming Sino-US tensions

Hong Kong share market finished session higher on Tuesday, 07 February 2023, snapping three days losing streak, as traders chased for bargain buying on heavily battered stocks amid hopes for a de-escalation in Sino-U.S. tensions.

Market sentiments also improved on Stock Connect data showing Mainland Chinese investors were net buyers of Hong Kong stocks for a second day to take advantage of market slip-up

At closing bell, the benchmark Hang Seng Index advanced 76.54 points, or 0.36%, to 21,298.70. The Hang Seng China Enterprises Index was up 42.88 points, or 0.6%, to 7,232.25. The city's benchmark had retreated by almost 4% in the preceding three days.

 

Market sentiment improved as both Beijing and Washington appeared to show willingness to de-escalate after U.S. President Joe Biden said on Monday that bilateral relations had not been weakened by the United States' downing of a suspected Chinese spy balloon over the weekend.

Mainland Chinese funds were net buyers of HK$16 million (US$2 million) worth of Hong Kong-listed shares on Tuesday, adding to a haul of HK$1.99 billion (US$255 million) on Monday, according to Stock Connect data.

Among blue chips, Alibaba Group advanced 1.7% to HK$105, while Tencent Holdings added 1.1% to HK$381 and oil explorer CNOOC jumped 2.3% to HK$11.42. Longfor Group gained 1.2% to HK$24.55, and WuXi Biologics added 1.7% to HK$64.60.

Shares of Baidu surged 15.6% to HK$162.90 following reports saying search engine operator would complete internal testing and launch Ernie Bot in March, an app to rival ChatGPT, a popular AI-aided app with humanlike responses.

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