China Stocks Advanced Ahead of Earnings Releases This Week

Li Chen
19 Aug, 2024
Hong Kong

Domestic earnings optimism and waning fears of an economic slowdown in the U.S. supported the mark advance in Monday's trading in Hong Kong and Shanghai. 

The Hang Seng index jumped 1% and the mainland-focused CSI 300 index gained 0.4%. 

Market sentiment remained positive for the second week in a row following the largest single-day gain in Friday's trading in the Hang Seng index. 

The tech stocks index in Hong Kong jumped nearly 2% after JD.com reported second-quarter earnings increased 92% from a year ago. 

Investors are looking forward to earnings from leading corporations this week, including results from AIA on Thursday and Hong Kong Exchanges and Clearing on Wednesday. 

Market sentiment in Hong Kong and Asia was bolstered by advances in Friday's trading in New York, driving the S&P 500 index in 2024 to its best weekly gain in 2024. 

Investors have built up expectations of at least a 25 basis points rate cut at the end of the Fed's two-day policy meeting on September 18. 

Consumer price inflation has steadily declined to just under 3%, but despite the eleven rate hikes over 2022 and 2024, the inflation rate is still far higher than the Fed's 2% target rate. 

 

China Stock Movers 

The Hang Seng index soared 1% to 17,614.62, and the CSI index rose 0.4% to 3,359.25. 

JD.com jumped 5.4% to HK $114.0 and extended two-day gains to close to 10% after the diversified Internet conglomerate reported a 92% jump in earnings in the second quarter. 

Other tech leaders traded higher of their earnings announcements, following the release of earnings from JD.com. 

Baidu Inc. advanced 3.8% to HK $87.0 ahead of the search engine company's earnings on Thursday. 

Xiaomi Corp increased 2.8% to HK$17.80, and Meituan advanced 1.6% to HK$109.40. 

ASMPT Ltd. declined 0.3% to HK $85.40, and the stock jumped as much as 1.3% earlier in the day after the semiconductor company was selected to be included in the Hang Seng Tech Index.