The Hang Seng Index added 0.1 per cent to 17,128.78 at local noon trading break, after losing as much as 0.2 per cent earlier in the day. The Tech Index lost 0.4 per cent, while the Shanghai Composite Index was little changed.
Tencent jumped 1 per cent to HK$378.60, the highest level in a month, as its earnings card due Wednesday is likely to show profit surged 54 per cent last quarter. CNOOC rose 2.6 per cent to HK$20.25, PetroChina jumped 2.5 per cent to HK$6.84 and Sinopec added 1 per cent to HK$5.01 after oil prices spiked amid rising fears of expanded Middle East conflicts.
Limiting gains, Li Auto dropped 2 per cent to HK$75.45 and BYD lost 1 per cent to HK$211.40, leading a retreat among electric vehicle makers. Food delivery platform Meituan slipped 1.5 per cent to HK$102.40 and gaming firm NetEase declined 1.1 per cent to HK$139.20.
“Once the Hong Kong stock market sees some substantial gains, the volatility rises, which could lead to more profit-taking at this point,” analysts at Ping An Securities said in a note on Monday. The key to sustained inflow lies in the further recovery of mainland China’s economic momentum, they added.
Contracting trading volume in the city’s market also adds signs of potential concern, indicating a possible lack of sustained investor interest or participation in the current market conditions. Turnover on the city’s stock exchange slid to HK$70.3 billion (US$9 billion) on Monday, a six-month low.
Elsewhere, County Garden Services tumbled 6.2 per cent to HK$4.40 after it said net profit for first half of the year slid as much as 37 per cent to 1.7 billion yuan (US$237 million) in first six months of this year amid China’s ongoing property downturn.
Major Asian markets advanced, continuing a recovery from the sell-off last week. Japan’s Nikkei 225 rallied 2.6 per cent and Australia’s S&P/ASX 200 Index climbed 0.1 per cent. South Korea’s Kospi Index was little changed.
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