Hong Kong Stocks surge as Biden's White House chances raise trade truce hopes

The Hong Kong stock market finished session higher on Thursday, 5 November 2020, as growing prospects of a Joe Biden presidency in the United States raised investor expectations of a less problematic trade relationship between the world's two largest economies.

At closing bell, the benchmark Hang Seng Index added 3.25%, or 809.78 points, to 25,695.92. Hang Seng China Enterprises Index grew 3.76%, or 379.68 points, to 10,478.84.

Alibaba jumped 6.3% to HK$294.60 after suffering a 7.5% rout on Wednesday. The fair value of the e-commerce juggernaut would be negatively affected by an estimated low- to mid-single-digit percentage, given that Ant Group only accounts for 11% of that value.

 

Chinese technology stocks also rallied. Sunny Optical Technology climbed 5.3% to HK$144.30 and Semiconductor Manufacturing International Corp advanced 7.4% to HK$23.95.

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