Hong Kong and China stocks extended gains on Friday, with the Hang Seng Index logging its best week since October 2011, as sentiment recovered further after strategists from global investment houses upgraded their views on Chinese shares.
Meanwhile, foreign investors purchased a net 22.4 billion yuan ($3.09 billion) in Chinese A-shares via the stock connect programme on Friday, a record high.
Chinese internet giants listed in Hong Kong .HSTECH jumped 4.6% to lead the gains.
“A lot of investors do see some technical opportunities in China,” Tai Hui, APAC chief market strategist at J.P. Morgan Asset Management said.
The recent resilience in China and Hong Kong stocks despite a correction in the U.S. markets, showcases the importance of including China into the portfolio for diversification, he added.
China’s President Xi Jinping met U.S. Secretary of State Antony Blinken on Friday afternoon, in a sign of easing tensions between the two countries.
** At the close, the Shanghai Composite index .SSEC was up 1.17% at 3,088.64. ** The blue-chip CSI300 index .CSI300 was up 1.53%, with its financial sector sub-index .CSI300FS higher by 1.02%, the consumer staples sector .CSI000912 up 1.22%, the real estate index .CSI000952 up 5.93% and the healthcare sub-index .CSI300HC up 2.16%. ** The smaller Shenzhen index .SZSC ended up 1.78% and the start-up board ChiNext Composite index .CNT was higher by 3.344%. ** Around the region, MSCI’s Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.84%, while Japan’s Nikkei index .N225 closed up 0.81%.
** At the close of trade, the Hang Seng index .HSI was up 366.61 points or 2.12% at 17,651.15. The Hang Seng China Enterprises index .HSCE rose 2.44% to 6,269.76. ** The sub-index of the Hang Seng tracking energy shares .HSCIE rose 1.6%, while the IT sector .HSCIIT rose 3.54%, the financial sector .HSNF ended 0.96% higher and the property sector rose 3.35%.
($1 = 7.2463 Chinese yuan renminbi)
(Reuters)
