Hong Kong stocks set for best week in 18 months

Apr 26, 202404:42 UTC

Hong Kong and China stocks extended gains on Friday, with the Hang Seng Index set for its best week in 18 months, as sentiment recovered further after strategists from global investment houses upgraded their views on Chinese shares.

"A lot of investors do see some technical opportunities in China," said Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management.

The recent resilience in China and Hong Kong stocks despite a correction in the U.S. markets, showcases the importance to include China into the portfolio for diversification, he added.

Meanwhile, BNP Paribas estimated that mainland Chinese investors had bought close to a net $20 billion of Hong Kong equities across March and up to April 23 – the largest two-month purchase since 2021.

"We believe southbound investors could be using HK-listed equities to diversify their currency exposure in light of rising RMB depreciation pressure," BNP Paribas strategists said in a note.

** At the midday break, the Shanghai Composite index 000001 was up 0.79% at 3,076.92.

** China's blue-chip CSI300 index 3399300 was up 1.03%, with its financial sector sub-index 3399914 higher by 0.19%, the consumer staples sector 0000912 up 0.94%, the real estate index 000952 up 3.79% and the healthcare sub-index 399913 up 1.6%.

** Chinese H-shares listed in Hong Kong HSCEI rose 2.41% to 6,267.9, while the Hang Seng Index HSI was up 1.98% at 17,626.75.

** The Hang Seng Index hit a five-month high and was on track for its biggest weekly gain since the week ended Nov. 4, 2022.

** The smaller Shenzhen index 399106 was up 1.33%, the start-up board ChiNext Composite index 3399006 was higher by 2.54% and Shanghai's tech-focused STAR50 index (.STAR50) was up 2.1%.