© Bloomberg. The Two International Finance Center, left, and other buildings in Hong Kong, China, on Wednesday, May, 26, 2021. Hong Kong’s unemployment rate fell for a second straight month in April as the city slowly emerges from an extended slump fueled by the pandemic and social unrest. Photographer: Paul Yeung/Bloomberg
(Bloomberg) — Hong Kong stocks advanced after technology firms rebounded, led by Tencent (HK:) Holdings (OTC:) Ltd., as investors continued to weigh growth prospects against regulatory risks.
The climbed 1.2% by 10:28 a.m. local time, boosted also by a gain of much as 10% for Anta Sports Products Ltd. Tencent rose as much 4.3%.
The moves come after a volatile couple of weeks for stocks in the financial hub, which were rocked by the shock ban on profit making at tutoring companies that late last month triggered a near $1 trillion global selloff.
“Today we see some technology rally, because some short-term traders might find some opportunities and are betting on technical rebound,” said Steven Leung, UOB Kay Hian executive director. “We are seeing many mainland investors buying Tencent today — a good sign for the market since they were net sellers.”
Tencent Is Crowding Out Rest of Hong Kong Stocks
On Tuesday, Tencent — which had been Asia’s largest stock by market value and one of the most heavily weighted in Hong Kong’s benchmark gauge — dropped 6.1% after a critique by state media of the online gaming industry.
Sportswear stocks contributed the benchmark’s gains Wednesday after Chinese authorities made clear their preference for physical fitness and recreation rather than online gaming.
A Bloomberg gauge tracking Macau’s casino operators fell as much as 5.5%, set for its worst day since September last year, after Macau required Covid-19 test for people departing the city after new cases were identified.
Wynn Macau (OTC:) Ltd. fell as much as 9.4%, while SJM Holdings (OTC:) Ltd. lost 7.2%. Galaxy Entertainment Group (OTC:) Ltd. fell 6.3%.
Chinese investors net bought a combined HK$2 billion worth of Hong Kong stocks via the trading links with Shenzhen and Shanghai on Wednesday, set for the most since July 9, Bloomberg data shows.
©2021 Bloomberg L.P.
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