Hong Kong stocks closed higher on Friday as investors awaited the outcome of the US Federal Reserve’s annual Jackson Hole meeting, while a JPMorgan report suggesting a rally in onshore Chinese stocks will continue acted as a catalyst.
The Hang Seng Index added 0.9%, for its third consecutive weekly gain. The Hang Seng Tech Index rose 2.7%.
In terms of star stocks, XPeng rose 14%; NIO rose 11%; SMIC rose 10%; Kuaishou rose 4%; CATL, Mixue Group, and BYD rose 3%; Xiaomi and Alibaba rose 2%; Li Auto, Tencent, and Meituan rose 1%; while Bilibili fell 6%; Laopu Gold fell 3%.
JPMorgan said in a recent report that it expected the momentum in mainland Chinese equities to persist, as leverage and valuations remained at moderate levels. The US investment bank estimated that potential asset rotation could inject as much as 14 trillion yuan (US$1.9 trillion) of liquidity into the market, equal to about 16 per cent of its free-float capitalisation.
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