HONG KONG: Hong Kong stocks snapped a three-session losing streak and ended higher on Tuesday, led by strong gains in technology firms. At the close of trade, the Hang Seng index was up 488.50 points or 2% at 24,946.63. The Hang Seng China Enterprises index rose 1.7% to 10,203.88.
Tech shares led the gains, with the newly-launched Hang Seng tech index up 2%. Meituan Dianping closed at an all-time high, as mainland investors continued to buy into the Chinese food delivery giant. Tech firms also got boost from expectations that household names Alibaba, Meituan Dianiping and Xiaomi Technology may join Hong Kong's Hang Seng Index this month.
Mainland China and offshore hub Hong Kong's latest indexes representing technology companies are likely to attract $25 billion in five years from passive investors, according to a Goldman Sachs report released on Thursday. The Nasdaq surging to another record high would provide support for Hong Kong's tech players, KGI Securities said in a note, adding that Hang Seng's Q2 index review would also help boost tech giants including Meituan and Xiaomi. Though caution remained given the persistent Sino-US tensions.
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