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Hong Kong stocks snap 3-day slide as WuXi Biologics, Sands China, Meituan lead rebound with buying support
- This week’s rout prompted WuXi Biologics to quickly push for a US$600 million buy-back plan; Las Vegas Sands to raise its stake in Sands China
- Sell-off this week is driving the Hong Kong market closer to a level deemed technically oversold
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Zhang Shidongin Shanghai
Hong Kong stocks rebounded from a 13-month low after a rout prompted companies, including WuXi Biologics and Meituan, to unveil measures to support their share prices. Buyers returned, with the market approaching levels deemed technically oversold on charts.
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The Hang Seng Index rose 0.8 per cent to 16,463.26 at close, clawing back some of the 4.2 per cent loss in the preceding three days. The Tech Index rallied 1.8 per cent but the Shanghai Composite Index eased 0.1 per cent.
WuXi Biologics gained 1.2 per cent to HK$30.70 after pledging US$600 million to buy back its own shares, after a two-day selling shaved 30 per cent off its value. Sands China rallied 4 per cent to HK$21, after parent Las Vegas Sands agreed to spend HK$1.95 billion (US$249.5 million) to raise its stake in the Macau casino unit. Meituan added 2.1 per cent to HK$86.40, aided by a US$1 billion buy-back plan.
Elsewhere, Tencent climbed 0.9 per cent to HK$311.60 and NetEase jumped 4.6 per cent to HK$165.20 after China approved more video-game titles. EV makers BYD advanced 2.6 per cent to HK$213.20 while Xpeng added 1.7 per cent to HK$64.35. Peer Nio rallied 4.9 per cent to HK$59.20 after losses narrowed last quarter.
Before today, the Hang Seng benchmark had lost 17.5 per cent this year on concerns about China’s economic slowdown. Losses accelerated on Tuesday after Moody’s lowered China’s rating outlook to negative from stable, and foreign funds sold onshore-listed shares by the most in six weeks.
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