Hong Kong Stocks Jump Second Consecutive Week After Positive Earnings

Li Chen
16 Aug, 2024
Hong Kong

Stocks in Hong Kong and Shanghai diverged as investors reacted to earnings reports and reviewed the latest comments from the People's Republic of China governor. 

The Hang Seng index jumped more than 1.5% after JD.com and Alibaba Group reported their quarterly results. 

Stock market sentiment has wavered in recent months following the weak macroeconomic and earnings outlook, but market sentiment rebounded after global market sentiment improved and leading tech companies reported a sharp jump in earnings. 

Positive results from residential developers, banks, and tech leaders also bolstered market sentiment in Hong Kong over the last two weeks. 

People's Bank of China Governor Pan Gongsheng said in an interview with CCTV on Thursday that the central bank will take measures to effectively implement policy measures announced earlier in the year to achieve the growth target set by the politburo. 

The Hang Seng index advanced for the second week in a row amid positive earnings from tech companies, but market sentiment has been more cautious in mainland China trading. 

For the week, the Hang Seng index advanced 2% and the CSI 300 index gained 0.4%. 

Global market sentiment improved after U.S. retail sales were ahead of expectations, following softer increases in consumer and producer price inflation, easing worries of a U.S. economic slowdown. 

The S&P 500 index and Nasdaq Composite inched closer to record highs in mid-July and recovered sharp losses from the previous two weeks, which sparked a global rout. 

 

China Stock Movers 

The Hang Seng index advanced 1.7% to 17,397.61, and the CSI 300 index gained 0.1% to 3,343.21. 

JD.com jumped 8.2% to $107.50, and the online retailer reported a sharp jump in income in the second quarter, despite the intense price competition. 

Revenue increased 1.2% to 291.4 billion yuan, and net income soared to 12.6 billion yuan. 

Alibaba Group advanced 4.7% to HK $80.0, and the e-commerce platform and cloud service provider reported a 4% increase in revenue in its latest quarter. 

Revenue in the second quarter increased 4% to 243.2 billion yuan, and net income declined 29% to 24.3 billion yuan. 

Cloud division revenue rose less-than-expected by 6% to 26.5 billion yuan.