HONG KONG: Hong Kong and China stocks extended gains on Friday, with the Hang Seng Index logging its best week since October 2011, as sentiment recovered further after strategists from global investment houses upgraded their views on Chinese shares.
Meanwhile, foreign investors purchased a net 22.4 billion yuan ($3.09 billion) in Chinese A-shares via the stock connect programme on Friday, a record high.
Chinese internet giants listed in Hong Kong jumped 4.6% to lead the gains.
“A lot of investors do see some technical opportunities in China,” Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management said.
The recent resilience in China and Hong Kong stocks despite a correction in the US markets, showcases the importance of including China into the portfolio for diversification, he added.
China’s President Xi Jinping met US Secretary of State Antony Blinken on Friday afternoon, in a sign of easing tensions between the two countries.
At the close, the Shanghai Composite index was up 1.17% at 3,088.64. The blue-chip CSI300 index was up 1.53%, with its financial sector sub-index higher by 1.02%, the consumer staples sector up 1.22%, the real estate index up 5.93% and the healthcare sub-index up 2.16%.
The smaller Shenzhen index ended up 1.78% and the start-up board ChiNext Composite index was higher by 3.344%.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.84%, while Japan’s Nikkei index closed up 0.81%.
At the close of trade, the Hang Seng index was up 366.61 points or 2.12% at 17,651.15. The Hang Seng China Enterprises index rose 2.44% to 6,269.76.
The sub-index of the Hang Seng tracking energy shares rose 1.6%, while the IT sector rose 3.54%, the financial sector ended 0.96% higher and the property sector rose 3.35 percent.
Comments
Comments are closed for this article.