Alibaba Leads Hong Kong Stock Rebound, Mainland Indexes Struggle

Li Chen
12 Sep, 2024
Hong Kong

Hong Kong stocks advanced and Shanghai stocks turned lower amid heightened market volatility in China. 

The Hang Seng index jumped 1% on the expectations of a rate cut in Europe later today and in the U.S. next week, but the CSI 300 index struggled amid weak investor sentiment. 

The Hang Seng index nearly erased August's 4% advance this month amid worries of an economic slowdown in the U.S.

However, market indexes rebounded in Thursday's trading as investors shifted their focus to monetary policy decisions from the European Central Bank and the U.S. Federal Reserve. 

Moreover, crude oil prices hovered around a three-year low of $66 a barrel in New York, amid demand growth worries in China and the U.S. 

The accelerated structural shift to renewable energy and faster adoption of electric vehicles in China is likely to curtail future demand for crude oil. 

Moreover, China's rapid growth in exports of solar panels, windmills, and electric vehicles to the ASEAN region, Russia, Central Asia, and the rest of the world is also likely to negatively impact global crude oil demand. 

Investors remained cautious as the domestic consumer demand remained weak in China amid job market uncertainties and a protracted property market slump. 

Moreover, China's leadership has shifted its focus from supporting economic growth to investing in military technologies and modernizing its defense capabilities. 

 

China Stock Movers 

The Hang Seng index rebounded 1% to 17,274.72, and the CSI 300 index decreased 0.2% to 3,181.57. 

Energy stocks were in focus for the second day in a row after Hurricane Francine made landfall in Louisiana, halting oil refinery operations and crude oil explorations in the Gulf of Mexico. 

PetroChina declined 1% to HK $5.55, China Petroleum and Chemical fell 1% to HK $4.24, and CNOOC increased 0.1% to HK $18.0. 

In Hong Kong, property developers were in focus ahead of the widely expected rate cut in the U.S. next week. 

China Vanke increased 1.3% to HK $3.89, Longfor Holdings Group added 0.6% to HK $7.72, China Overseas Land declined 1.2% to HK $10.96, and Sun Hung Kai advanced 1.4% to HK $77.40. 

Following the gains in overnight trading in New York, technology stocks advanced in Hong Kong but struggled in Shanghai and Shenzhen. 

Alibaba Group edged up 1.1% to HK $83.50 as mainland investors snapped up HK11.6 billion worth of the company's stock on the first day of trading on the Stock Connect. 

Tencent Holdings added 1.2% to HK $374.60, Baidu jumped 2.2% to HK $82.25, and Meituan advanced 4% to HK $124.20.