Tech and EV Rally Lifts Hang Seng Index to a Seven-Week High

Li Chen
30 Aug, 2024
Hong Kong

Stocks in Hong Kong and Shanghai advanced after bargain hunters returned to acquire tech and leading vehicle maker stocks.

The Hang Seng index and the CSI 300 index advanced 2% and extended weekly gains after two months of turbulent trading. 

The Hang Seng index closed above 18,000 for the first time since May as investors searched for bargains amid beaten-down tech stocks and electric vehicle makers. 

Electric vehicle makers rebounded between 3% and 11% following a sell-off in the previous session after the leading companies reported rising revenue and earnings, but margins continued to decline amid an intense price war. 

Market sentiment further improved after the U.S. second-quarter GDP growth was revised higher to 3.0% from the previous estimate of 2.8% and 1.4% in the first quarter. 

For the week, the Hang Seng index advanced 2.0% and the CSI index gained 0.3%. 

 

China Stock Movers 

The Hang Seng index increased 2.2% to 18,166.76, and the CSI 300 index rose 2% to 3,342.08. 

Li Auto Group gained 10.5% to HK $80.90, BYD Group added 6.6% to HK $242.60, Xpeng increased 9.4% to HK $32.15, and Geely Automobile closed up 3.3% to HK $8.92. 

HSBC Holdings increased 0.8% to HK $68.85, and the newly appointed chief executive Georges Elhedery announced a management shakeup. 

Elhedery is set to assume the CEO position next week and appointed a new head of the global wealth management unit and created a leadership position for digital banking and technology development. 

Baidu increased 2.5% to HK $83.55, Meituan jumped 4.2% to $120.60, Alibaba Group gained 3.4% to HK $81.85, and Tencent Holdings increased 1.8% to HK $384.40.