Technology stocks

Chinese tech stocks drive Hong Kong gains

Hong Kong stocks ended with gains yesterday as the surge in Chinese tech stocks helped it wipe out a weak Wall Street lead on the last trading day of the year.
The benchmark Hang Seng closed more than 1% on a day many Asian exchanges – Indonesia, Japan, South Korea, Taiwan and Thailand – were closed for public holidays.
Hangzhou-based conglomerate Alibaba rose more than 8%, with Meituan food delivery platform up more than 3%, pushing the Hang Seng tech index to overall gains of 3% over the course of a stock market session cut short by the holidays.
The Daily Gains signaled good news at the end of a difficult year for many Chinese tech giants, who were beaten by Beijing’s drive to limit their outsized influence over the world’s second-largest economy.
The Hang Seng Index was the world’s worst performing major indicator in 2021, down around 14% for the year, while the Hang Seng Technology Index is nearly halved from a peak of February.
“The outlook for 2022 remains uncertain, especially during the first quarter because the regulatory risk is not yet completely ruled out,” warned Steven Leung, executive director of UOD Kay Hian (Hong Kong). Shanghai was slightly higher at the close, while Sydney and Wellington posted slight losses.
In the previous trading day, global stocks were mixed as markets weighed in to limit the health and economic effects of the latest wave of rapidly spreading Covid-19.
The Omicron variant has led to new cases of Covid-19 being recorded globally, but markets have remained optimistic in light of research suggesting that the health effects will be milder than with previous variants.
Paris and Frankfurt both climbed, but London fell and Wall Street halted its rally, with the Dow Jones and S&P 500 retreating from their all-time highs. “Concerns about the Omicron variant have subsided, but the speed of its spread is tempering sentiment,” analysts Charles Schwab wrote.
And Jason Pride, chief investment officer for private wealth at Glenmede, told Bloomberg Television: “As we look to 2022, the gains are likely to be more modest than they have been over the past year. . “
But there were also reasons to be optimistic, he said, because “we are still recovering from the pandemic”.
Tokyo was closed for a public holiday. Hong Kong – The Hang Seng Index closed up 1.24% at 23,397.67 points and Shanghai – Composite closed up 0.57% at 3,639.78 points yesterday.