Hong Kong stocks kicked off the week’s trading on a strong note on Monday, with the benchmark extending the gain from a three-year high on Friday as optimism about the resilience of China’s growth and the risk-on mood in global equities boosted sentiment.
The Hang Seng Index rose 0.7%, while the Hang Seng Tech Index gained 0.8%.
In terms of star stocks, CATL rose 6%; Meituan rose 3%; JD.com, NIO, and Alibaba rose 2%; Xiaomi, NetEase, Kuaishou, and BYD rose 1%.
Investors took on risk-on mode after China last week reported faster-than-expected 5.3 per cent economic growth in the second quarter, surpassing its full-year growth target of around 5 per cent. In a sign of de-escalation of the geopolitical tensions, official data from China showed that exports to the US of rare earth materials, important for hi-tech products, surged almost eightfold last month.
Meanwhile, US stocks closed at record highs last week, with the Goldilocks scenario of low inflation and strong growth taking hold after official data showed robust retail sales and cooling consumer prices.
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