Alibaba, Pop Mart lead Hong Kong stocks higher before Christmas trading break

The Hang Seng Index advanced 0.2 per cent to 25,745.48 as of 11am local time, paring some of the 1.1 per cent loss last week. The Hang Seng Tech Index gained 0.7 per cent. On the mainland, the CSI 300 Index climbed 0.8 per cent and the Shanghai Composite Index added 0.7 per cent.

Trading in Hong Kong will be shortened over the holiday period, with an early close on Christmas Eve, while the market will remain shut on December 25 and 26. Southbound trading through the Stock Connect link will also be suspended from December 24 afternoon before resuming on December 29.

Leading the gainers, chipmaker SMIC jumped 5.3 per cent to HK$68.50 and blind-box toymaker Pop Mart International advanced 3.8 per cent to HK$200.20. E-commerce firm Alibaba Group Holding added 1.2 per cent to HK$147 and search-engine giant Baidu gained 1.4 per cent to HK$120.40.

Limiting the gains, biopharmaceutical firm Innovent Biologics fell 1.3 per cent to HK$82.20 and logistics major ZTO Express lost 1.4 per cent to HK$164.40. Online games provider NetEase tumbled 1.5 per cent to HK$211.20 and smartphone and carmaker Xiaomi retreated 2 per cent to HK$39.70.

“The picture is familiar to anyone who has traded Santa rallies before,” said Stephen Innes, managing partner at SPI Asset Management. “The tape is being supported by positioning, rate cut expectations, market-based plumbing liquidity, and the absence of a catalyst strong enough to force de-risking.”