The Hang Seng Index jumped 2 per cent to 18,264.51 at the noon trading break on Wednesday. The Tech Index added 2 per cent but the Shanghai Composite Index declined 0.3 per cent.
China’s top stock market regulator Wu Qing unveiled fresh measures to reform the technology board, focusing on offerings, underwritings, mergers and incentives to promote tech innovation at his keynote speech at the two-day Lujiazui financial forum.
That added to the upbeat mood after Wall Street’s rally overnight took the S&P 500 and Nasdaq to new peaks as the artificial intelligence (AI) mania extended its run and made Nvidia the world’s most valuable company. AI-related stock Lenovo Group jumped 6.1 per cent to HK$11.76. . Morgan Stanley analysts say Lenovo is likely to be the main beneficiary of the AI PC boom in Asia. HSBC estimated Lenovo’s AI PC penetration rate to rise and raised its target price to HK$13.5 from HK$11.7, according to a note in May.
“The reforms announced at the Lujiazui Forum today is conducive to foreign funds entering the stock market as the policy measures focus on protecting the rights and interests of investors and improving the quality of listed companies,” said Jason Chan, senior investment strategist at Bank of East Asia.
The policy emphasis on the development of China’s technology sector is also beneficial to the technology and AI-related stocks in Hong Kong, he added. Smartphone maker Xiaomi also advanced 4 per cent to HK$18.08.
Geely Automobile jumped 3.9 per cent to HK$9.23 after HSBC said Geely’s last month sales were better-than-expected, supported by a strong EV product cycle. Chinese developer Longfor added 2.9 per cent to HK$11.90 following its annual general meeting on Tuesday, in which the developer said it has been steadily lowering overall debt levels, helped by positive net cash flows.
Traders are also optimistic about further policy support as the world’s second-largest economy remains under pressure amid patchy economic data unveiled earlier this week.
“In China, regulatory policies announced in May and June have generally been favourable for the property sector, as the country prioritises efforts to end a slump that has burdened the economy for the past three years,” said Daniel Tan, portfolio manager at Grasshopper Asset Management.
Other key Asian markets advanced after S&P 500 and Nasdaq hit new highs overnight amid AI frenzy. Japan’s Nikkei 225 gained 0. per cent and South Korea’s Kospi rose 1.0 per cent, while Australia’s S&P/ASX 200 dropped 0.2 per cent.
