ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Hong Kong stocks post weekly gain ahead of formal trade pact

Property developer Sunac and WuXi Biologics slide after share sales

HONG KONG (Nikkei Markets) -- Hong Kong stocks completed a sixth straight weekly gain on Friday, with investors looking ahead to a formal Sino-American trade deal expected to be signed next week amid growing confidence that geopolitical tensions in the Middle East will not escalate.

The 50-stock Hang Seng Index advanced 0.3% to 28,638.20, after dropping as low as 28,504.27 earlier in the day. It rose 0.7% during the week. Internet services major Tencent Holdings climbed 2.2% and casino operator Galaxy Entertainment Group added 2% on Friday. Sunny Optical Technology Group increased 0.7% after the smartphone components maker released December data, which showed its volume shipments of handset lens surged almost 68% from a year earlier.

CNOOC dropped 1% and PetroChina gave up 2.2%, following an extended decline for crude oil prices.

Investors appeared to be reassured by lasting signs of de-escalation in the trade war between the world's two largest economies. Chinese Vice Premier Liu He will reportedly be traveling to Washington next week to sign phase one of the pact on Jan. 15. Easing U.S.-Iran tensions also provided some relief as participants viewed the absence of any casualties following Iran's attack this week on American forces in Iraq as a positive sign.

"I think the market now has less worries" as the odds of military escalation seem to have declined, said Tracy Chan, an analyst at KGI Asia. Liu He's trip to the U.S. for the trade agreement was perhaps not fully priced in, and the Hang Seng Index has a shot at 30,000 during the first quarter of 2020, Chan said.

In mainland China, meanwhile, the Shanghai Composite Index slipped 0.1%, while the yuan traded onshore strengthened 0.1% against the U.S. dollar at 6.9241.

Shares of Sunac China Holdings tumbled 4.4% to HK$44.60 in Hong Kong on Friday after the property developer said it would raise about 8 billion Hong Kong dollars ($1.03 billion) in gross proceeds from a share placement at HK$42.80. The placing was intended to expand the company's equity base and "optimize" its capital structure, Sunac said.

WuXi Biologics tumbled 5.4% to HK$97.60 after a controlling shareholder agreed to sell 60.8 million shares, representing 4.69% of the company's share capital, at HK$96.05 each.

China Education Group gained 2.9% after the private education provider said rumors that the group was seeking to dispose assets or spin off its business were "completely false and unfounded." The stock rose 6.1% during the week.

Hong Kong Television Network jumped 3.9% on Friday after setting a gross merchandise value (GMV) target of HK$3.38 billion for this year, up from HK$2.78 billion in GMV orders it took in last year for the group's e-commerce business.

Livzon Pharmaceutical Group rose 3.6% after saying it expects preliminary net profit for 2019 to have increased by between 20% and 30%.

-- Benny Kung

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media