Hong Kong stocks rebound as Xi strikes upbeat tone on China’s economy in meeting with US business leaders

Hong Kong stocks rebound as Xi strikes upbeat tone on China’s economy in meeting with US business leaders

28 Mar Hong Kong stocks rebound as Xi strikes upbeat tone on China’s economy in meeting with US business leaders

Posted at 02:48h in Asia by

Hong Kong stocks rose, after President Xi Jinping met with US business leaders in a bid to boost confidence about the China’s growth prospect, pledging a market-oriented business environment in the world’s second largest economy.

The Hang Seng Index added 0.2 per cent to 16,426.49 as of 9.54am local time, trimming the decline to 0.8 per cent in March. The Hang Seng Tech Index gained 1.6 per cent and the Shanghai Composite Index retreated less than 0.1 per cent.

The city’s stock market will be closed on Friday and Monday for public holidays, but mainland China will be open for business.

The focus remained on corporate earnings with home appliances maker Haier Smart Home advancing 5.3 per cent to HK$23.70 after posting better-than-estimated full-year results.

But Industrial and Commercial Bank of China fell 2.3 per cent to HK$3.88 after reporting sluggish earnings. China Construction Bank lost 2 per cent to HK$4.70 ahead of its earnings release on Friday.

“We see 2023 as a moderately negative set of results for ICBC,” said HSBC analysts in a note while reducing its target price to HK$4.70 from HK$4.90 per share. As negatives, PPOP (Pre-provision operating profit) pressure was larger than we expected due to sharp NIM (net interest margin) compression and ongoing fee income pressure. Post-results, we lower 2024/25 EPS estimates by 1.2 per cent/2.3 per cent to reflect our revenue concerns.”

Xi pledged more policy support to improve the business environment in a meeting with more than a dozen of US business leaders in Beijing on Wednesday, underscoring Beijing’s efforts to restore confidence among foreign investors. He also dismissed the narratives that China’s economy was “collapsing” or “reaching its peak”, vowing to create “broader room” for foreign businesses.

Four companies made their trading debuts. Fujing Holdings, a producer of potted vegetables, surged 104 per cent from its IPO price to HK$2.20 on the first day of trading in Hong Kong and Lianlian DigiTech, a digital pay service provider, dropped 5.9 per cent to HK$9.62.

SigmaStar Technology, a manufacturer of semiconductor devices, jumped 168 per cent to 43.31 yuan in Shenzhen and Pamica Technology 001359, which makes insulating materials, rallied 69 per cent to 29.42 yuan.

Other major Asian markets were mainly lower. Japan’s Nikkei 225 slipped 0.9 per cent South Korea’s Kospi retreated 0.4 per cent, while Australia’s S&P/ASX 200 added 0.8 per cent.

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