- Hang Seng approaches a six-week high on speculation tech crackdown is softening as Jack Ma makes first overseas trip in more than a year
- Coal producers slump after an overnight plunge in futures contracts, as China considers intervening to stem runaway prices
Iris Ouyang
Hong Kong stocks approached a six-week high, aided by a rally in Alibaba Group Holding, amid speculation on its ties with Chinese regulatory authorities. Coal producers fell after an overnight plunge in the commodity.
The Hang Seng Index gained for a fourth day, adding 1.3 per cent to 26,125.96 at the local noon break, the highest level since September 10. The tech benchmark appreciated 3.1 per cent to a five-week high as the three biggest constituents advanced by at least 2.3 per cent.
Alibaba, the owner of this newspaper, surged 7.9 per cent to HK$177.90. Co-founder and former chairman Jack Ma is said to be in Europe for a study tour on agriculture, according to a person familiar with his itinerary, marking his first overseas trip in more than a year.
The travel, about a year after China halted Ant Group’s stock offering, fanned speculation China’s regulatory authorities are softening its crackdown on the broader technology industry. Tencent gained 2.3 per cent to HK$510.50 while Meituan added 2.6 per cent to HK$293 and JD.com rallied 3.4 per cent to HK$334.
In China, the Shanghai Composite Index was little changed, paring earlier losses. Major coal producers tumbled after futures on thermal coal prices plunged overnight. The government said late Tuesday that it was looking to intervene and stem surging prices following an energy supply crisis.
The most-traded thermal coal contract on the Zhengzhou Commodity Exchange, for delivery in January, fell 8 per cent to 1,755.40 yuan (US$275) a tonne, the biggest slide since August, Reuters reported. The price was still 260 per cent higher than a year earlier, having reached a record 1,982 yuan on Tuesday. Prices for steelmaking raw materials coke and coking coal fell around 9 per cent in Dalian, Reuters said.
A gauge tracking coal producers by Wind Information slumped 8.8 per cent, with China Coal Energy and Shanxi Lanhua Sci-Tech Venture tumbling by the daily cap of 10 per cent.
Elsewhere, property stocks weakened after a government report showed China’s housing market shrank for the first time in six years as confidence sagged amid a debt crisis at China Evergrande and mounting concerns about debt defaults in the industry.
New home prices in the 70 major cities fell 0.08 per cent in September from August, the National Bureau of Statistics said on Wednesday. Prices in the secondary market fell 0.2 per cent, Shanghai-based E-house China Research and Development Institute said. Country Garden fell 0.9 per cent. Sunac China Holdings lost 1 per cent.
China’s central bank kept the loan prime rates, against which corporate and household loans are priced, unchanged at 3.85 per cent for the 18th month.
Markets in Asia-Pacific were mixed. Equity benchmarks in Japan and Australia advanced by o.3 and 0.6 per cent respectively, while the Kospi in South Korea eased 0.2 per cent.