Hong Kong Market extends gains

Hong Kong stock market finished session higher on Thursday, 07 October 2021, as investors continued bargain buying due to signs of positive developments in Sino-U.S. relations and data showing that the services activity in China returned to positive levels.

At closing bell, the benchmark Hang Seng Index advanced 0.55%, or 136.12 points, to 24,837.85. The Hang Seng China Enterprises Index grew 0.72%, or 62.60 points, to 8,775.65.

China's service sector returned to growth in September as the resurgence in local COVID-19 cases abated and boosted supply and demand in the sector, according to the Caixin/Markit PMI report published on Friday. The Caixin China General Services Purchasing Managers' Index came in at 53.4 last month, up from 46.7 in August, indicating a renewed and strong increase in service activity. A PMI reading above 50 signals expansion in activities, while below 50 points indicates to contraction.

 

U.S. national security adviser Jake Sullivan and China's top diplomat, Yang Jiechi, had their first face-to-face encounter this week since an unusually public and acrid airing of grievances in Alaska in March. Meanwhile, U.S. President Joe Biden and Chinese President Xi Jinping have agreed in principle to hold a virtual meeting before year's end after high-level talks meant to improve communication between the two big powers.

Shares of tech companies advanced, with Alibaba Group Holding gaining further ground today, 5.6% to HK$155.60, after its American depositary shares rallied 8.3% in overnight US trading amid efforts to improve US-China ties. Tencent Holdings and Meituan jumped at least 2.1%.

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