Hang Seng Index Soar 1.7%, Weakness In IPOs Highlight Cautious Sentiment

Li Chen
24 Apr, 2024
Hong Kong

Stocks in Shanghai struggled to stay above the flatline, but market indexes in Hong Kong advanced for the second consecutive day. 

Market sentiment was cautiously optimistic in the hopes that Chinese companies are likely to meet or exceed lowered earnings expectations, supporting the advance indexes from the current depressed levels. 

The CSI 300 index decreased 0.01% to 3,505.81, and the Hang Seng Index rose 1.7% to 17,110.21. 

Stocks in Hong Kong soared following the rally in Asian markets after advances in New York for the second consecutive day. 

Positive earnings by General Motors, GE Aerospace, UPS, and PepsiCo supported the market gains in New York. 

Closer to home, Ping An Insurance gained 3.3% to HK$34.05 after the largest insurance company in China reported a smaller-than-expected decline in quarterly earnings. 

New Business Value, a measure of revenue and future profitability, was ahead of market expectations and rose 21% from a year ago. 

Hong Kong Exchanges & Clearings advanced HK$234.80 ahead of the company's release of earnings later this week. 

SenseTime Group soared 31% to HK$0.80 after the company released its latest version of the SenseNova generative AI model used for creative writing. 

Investor sentiment continues to be weak for the second day this week as new issues struggle to gain traction. 

Mobvoi, the speech recognition software developer, plunged 15% to HK$3.18 after the company listed its share on the Hong Kong Stock Exchange in an initial public offering. 

The company sold 84.6 million shares in an initial public offering and priced its shares at HK$3.80 per share, near the lower end of its filing range between HK$3.70 and HK$4.0. 

Sichuan Baicha Baidao, the operator of the tea store chain, extended its decline for the second consecutive day and fell 10% to HK$11.52 after the stock plunged 35% on the first day of trading on the Hong Kong Stock Exchange. 

On Tuesday, the tea store chain operator sold 174.4 million shares in an initial public offering and priced its shares at HK$17.50 per share. 

Elsewhere In Asia, market indexes gained following the advances in overnight trading in New York. 

Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York. 

In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen. 

The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time. 

The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.