Hong Kong stocks firm after Beijing pledges private sector support, Goldman sees China rally

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by Jiaxing Li at scmp.com

The People’s Bank of China said it would increase funding support for private companies’ bond issuance and meet the reasonable financing needs of developers
Conditions in China appear favourable for a rally into year-end, after its recent lag, said Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs

Hong Kong stocks posted gains after China’s central bank pledged more support for the private sector while sentiment also received a boost from Goldman Sachs’ view that conditions appeared favourable for a rally into the year-end.

The Hang Seng Index gained 0.6 per cent to 19,539.46 at the closing of Friday trading, reversing a three-day losing streak. The Tech Index jumped 2.1 per cent, while the Shanghai Composite Index added 0.2 per cent.

Shares of e-commerce giant Alibaba Group jumped 2.2 per cent to HK$95.15 and those in rivals JD.com advanced 3.1 per cent to HK$155. Food delivery platform Meituan gained 2.7 per cent to HK$144, while gaming giant NetEase jumped 2.5 per cent to HK$172.90. Sportswear maker Li Ning advanced 1.4 per cent to HK$44.45.

The property sector extended its rebound with developer Longfor adding 2 per cent to HK$19.42. A benchmark that tracks mainland developers listed on the Hong Kong exchange jumped 0.7 per cent, the most since July 28.

Among losers, shares of CK Hutchison Holdings, the flagship company of Hong Kong’s richest man Li Ka-shing, slumped 4.6 per cent to HK$44.15 after posting a 41 per cent drop in profit for the first half. The outlook remains challenging for the rest of the year as the elevated interest rates and weak economic growth is likely to continue to weigh on the company, it said in a statement.

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