Li Auto, BYD put Hong Kong stocks on course for best run in 5 months as buying persists

The Hang Seng Index rose 0.3 per cent to 17,143.34 as of 9.59am local time. The Hang Seng Tech Index gained 1.3 per cent, while the Shanghai Composite Index retreated 0.3 per cent.

Li Auto surged 5.7 per cent to HK$155.30 and peer BYD advanced 2.6 per cent to HK$215. Hong Kong Exchanges and Clearing added 3.7 per cent to HK$255 while Semiconductor Manufacturing International Corp strengthened 2.3 per cent to HK$17.62.

Buying sentiment remained upbeat after the Hang Seng Index erased its year-to-date loss on Tuesday, and the tech index, which tracks the biggest stocks in the sector, rebounded 21 per cent from a January low, technically defined as entering a bull market. Trading volume, meanwhile, rose to a six-month high of HK$150 billion (US$19.2 billion).

Elsewhere, sportswear maker Li Ning dropped 1.6 per cent to HK$21.70 after saying that it was unaware of the reason for a surge in its share price. The stock jumped 8 per cent on Tuesday after a report said that its namesake founder was considering taking the company private.

Two companies made their trading debut. Shandong Cvicse Middleware jumped 128 per cent to 51.09 yuan in Shanghai, and Newtechwood, which makes environmentally friendly plastic wood profiles, surged 161 per cent to 37.90 yuan in Shenzhen.

Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.3 per cent, while South Korea’s Kospi rose 0.2 per cent and Australia’s S&P/ASX 200 added 0.3 per cent.