Hong Kong Stocks Show Resilience: A Rebound Driven by Chinese Banks

Hong Kong Stocks Rebound: A Six-Day Decline Ends

Hong Kong stocks rose, with the benchmark set to snap a six-day decline, as Chinese banks rose on optimism that the sector will do more to boost share prices after the regulatory body urged companies with share prices lower than book values to enhance their performance. The Hang Seng Index advanced 1% to 19,610 as of 10:08 am local time, following a 7.3% decline over the past six trading days. Additionally, the Hang Seng Tech Index gained 0.7%.

Mainland China Benchmarks Also Rise

Mainland China’s benchmarks also edged higher, with the CSI 300 Index climbing 0.6%, while the Shanghai Composite Index added 0.8%. Industrial and Commercial Bank of China gained 3% to HK$4.74 and China Construction Bank advanced 2.4% to HK$6, both trading at discounts to their book values.

Alibaba Group Misses Revenue Estimates

On a less positive note, Alibaba Group Holding slipped 1.8% to HK$85.65 after its revenue for the quarter to October missed analysts' estimates. Companies whose stock prices trade below book values are required to submit plans to reverse this trend, as stated by the China Securities Regulatory Commission after the market closed on Friday.

Market Sentiment and External Factors

Sentiment on Hong Kong and Chinese stocks remains shaky due to the lack of anticipated fiscal stimulus from China and the looming threat of higher tariffs following the re-election of Donald Trump as US president. The Hang Seng Index has fallen about 15% from a high in October.

Regional Market Performance

• Japan’s Nikkei 225 slipped 0.7%
• South Korea’s Kospi rose 2.3%
• Australia’s S&P/ASX 200 remained little changed

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