Hong Kong stocks rose, led by electric vehicle (EV) producers amid record sales. Investors await further fresh catalysts from policymakers in Beijing to shore up economic growth, while traders bet the Federal Reserve will cut rates this week to extend its easing cycle.
On November 4, 2024, the Hong Kong stock market closed higher. The Hang Seng Index (HSI) rose by 0.30%, the Hang Seng Tech Index (HSTECH) surged by 1.08%.
In the pharmaceutical sector, INNOVENT BIO surged by 12.84% after announcing the termination of its subscription agreement with Lostrancos, reaffirming its commitment to international business expansion.
The financial sector also saw significant movements. CITIC SEC rose by 5.41%, and CSC increased by 6.46%, reflecting positive investor sentiment.
Among the sectors, the electric vehicle sector showed significant gains. XPENG-W rose 7.67%, GEELY AUTO rose 4.62%, BYD COMPANY climbed 3.53%.
Four major Chinese electric vehicle (EV) makers reported record monthly sales in October, buoyed by surging domestic demand, even as they grappled with barriers to overseas growth amid punitive tariffs levied by the European Union (EU).
BYD, the world’s largest EV assembler, sold 502,757 pure-electric and hybrid EVs last month, up 66.5% year on year and 19.8% compared with September, the company said in a statement filed to the Hong Kong and Shanghai stock exchanges on Friday.
Most of BYD’s EVs were sold to domestic customers, with only 31,192 units, or 6.2%, delivered abroad.
XPeng, well known for its autonomous-driving technology, handed 23,917 EVs to mainland customers in October, rewriting its sales record for the second straight month as deliveries beat September’s by 12%.
Leapmotor, backed by Stellantis, sold 38,177 vehicles in October, up 13.1% from September, recording its fifth straight record month.
Zeekr, the premium electric-car maker controlled by Geely Auto, reported 25,049 deliveries in October, 17.4% better than the previous record a month earlier.
“Some auto stocks performed better, following the relatively-good October sales numbers,” said Jason Chan, senior investment strategist at Bank of East Asia. “I believe that the policy of replacing old vehicles with new ones has powered the surge.”
Investors are banking on Beijing to deliver another round of tonic as part of its efforts to rescue the nation’s stock and property market. A blitz on September 24 helped spark a world-beating US$4.5 trillion rally in the subsequent four weeks. That advance has stalled as some experts said more measures are needed to revive market confidence.
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