Hong Kong stocks extended gains into a fourth day on Thursday, as a strong reading on China trade data bolstered hopes that the world’s second-largest economy would sustain growth momentum throughout the year.
The Hang Seng Index rose by 0.69%, the Hang Seng China Enterprises Index increased by 0.55%, and the Hang Seng Tech Index edged up by 0.26%.
CaoCao Inc soared 18%; New World Dev, Cowell up around 10%; Laopu Gold up over 3%; Alibaba up 2%; Li Auto down 1%.
“China’s exports supported the economy strongly so far this year,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management in Hong Kong. “The government is on track to deliver the growth target of 5 per cent for the full year.”
Still, growth in overseas shipments could moderate in the coming month, as the effect of front-loading Chinese goods to avoid higher tariffs waned, according to Zhang. US President Donald Trump hinted at a higher tariff rate on China after imposing a punitive 25 per cent levy on India for purchasing oil from Russia.
Mainland exports increased 7.2 per cent from a year earlier in July, the customs office said on Thursday. That beat the 5.6 per cent estimate of economists polled by Bloomberg. Imports rose 4.1 per cent against a projection of a 1 per cent decline.
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