Hong Kong stocks rise as trade agreement soothes fears on rare earths, chips
Agreement’s annual review framework ‘provides better visibility for the capital markets,’ Bank of America Securities says
The Hang Seng Index closed 1 per cent higher at 26,158.36. The Hang Seng Tech Index added 0.2 per cent. On the mainland, the CSI 300 Index strengthened 0.3 per cent and the Shanghai Composite Index added 0.5 per cent.
Leading the gainers, online travel-booking agency Trip.com Group rose 1.8 per cent to HK$553 and blind-box toymaker Pop Mart International added 2.3 per cent to HK$226.60. Smartphone and car maker Xiaomi rose 3.5 per cent to HK$44.72, and local property developer Sun Hung Kai Properties added 2.2 per cent to HK$96.55. Oil and gas company PetroChina surged 3.4 per cent to HK$8.29 and peer CNOOC advanced 3.5 per cent to HK$20.46.
Limiting gains, jeweller Chow Tai Fook Jewellery Group slumped 8.7 per cent to HK$13.90 and gold producer Zijin Mining lost 1.6 per cent to HK$31.72. Chinese home-grown chipmaker Semiconductor Manufacturing International slipped 2.9 per cent to HK$72.85.
“The most significant implication is that, because China tightly controls rare earths and critical minerals, other countries will likely be more reluctant to raise trade barriers against China moving forward,” said Hui Shan, an economist with Goldman Sachs in a note.