Hong Kong, China Stocks Struggle For Direction, Even As Ant Group Files For IPO That Could Mark The World's Biggest Fundraising - TheStreet

Hong Kong, China Stocks Struggle For Direction, Even As Ant Group Files For IPO That Could Mark The World's Biggest Fundraising

Three stocks to be added to Hang Seng Index - Alibaba, Xiaomi, Wuxi Biologics - all rise Coronavirus remains a drag on sentiment
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Hong Kong, China Stocks Struggle For Direction, Even As Ant Group Files For IPO That Could Mark The World's Biggest Fundraising

Hong Kong tech stocks gained Wednesday as Jack Ma's Ant Group filed for dual listings in the city and in Shanghai while overnight US equities hit all-time highs for the third consecutive session.

The three stocks that will become part of the Hang Seng Index on September 7 all rose. Wuxi Biologics shot up 3.7 per cent, while e-commerce giant Alibaba, the owner of the South China Morning Post, jumped 3.1 per cent and Chinese smartphone maker Xiaomi soared 4.7 per cent. Xiaomi, which reports earnings Wednesday, posted an 18.4 per cent gain last week.

The month-old tech board of Hong Kong's 30 largest technology companies rose 0.6 per cent.

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Other tech stocks did well ahead of Ant Group's mega listing, which is expected to surpass Saudi Aramco's US$29.4 billion initial public offering (IPO) in December as the largest fundraising. JD.com rose 3.6 per cent, while NetEase advanced by almost 2 per cent.

The Hang Seng Index see-sawed between small gains and losses, and was down a teensy 0.05 per cent to 25,473.10 in early trading, after posting a small loss Tuesday. Health care stocks led gains while information technology stocks were laggards. The benchmark is trying to close above 25,500, which it did on Monday for the first time in about five weeks.

In the mainland, the Shanghai Composite Index fell less than 0.1 per cent to 3,373.02. The tech-heavy ChiNext and the CSI 300 of large caps in Shanghai and Shenzhen were little changed.

Continuing this week's trend of spectacular gains of debuting stocks on the mainland, chemical manufacturer Jenkem Technology shot up as much as 228 per cent in its debut.

Elsewhere in Asia, Japan's Nikkei 225 was little changed, while South Korea's Kospi and Australia's S&P/ASX 200 were trading down about 1 per cent.

"This week's 'risk-on' move is a little less convincing this morning as coronavirus concerns never drift far from the market conversations these days," Stephen Innes, global chief market strategist at AxiCorp, wrote in a note.

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