Hong Kong stocks on course for nearly 4-year high on Tencent earnings beat

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Hong Kong stocks on course for nearly 4-year high on Tencent earnings beat

A stellar run on Hong Kong stocks gained traction on Thursday, with the benchmark heading for a level not seen in almost four years after better-than-expected earnings by Tencent Holdings added to signs that China’s economic activity is picking up.

The Hang Seng Index rose 0.2 per cent to 25,674.25 as of 10.56am local time, on track for its highest close since November 16, 2021. The Hang Seng Tech Index gained 0.1 per cent.

On the mainland, the CSI 300 Index climbed 0.7 per cent and the Shanghai Composite Index added 0.3 per cent.

Tencent, the second-biggest weighting on the Hang Seng Index, gained 1 per cent to HK$592. Semiconductor Manufacturing International advanced 3.8 per cent to HK$54.05 and Anta Sports Products added 2.9 per cent to HK$92.60.

Second-quarter net income for Tencent rose 16 per cent from a year ago to 55.6 billion yuan (US$7.8 billion) based on the global accounting standard, the social-media giant said on Wednesday after the market closed. That beat the consensus estimate of 50.8 billion yuan in a Bloomberg survey of analysts. Sales increased for the 11th quarter, with a 15 per cent increase.

“Hong Kong stocks still have upside room,” said Yan Zhaojun, an analyst at Zhongtai Securities. “Expectations for corporate earnings are stable. Earnings for the upstream industries will be revised upward because of China’s move to cut excessive capacities in the anti-involution campaign.”

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Amjad Ali 1 week ago

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