Hang Seng Index consolidates gains amid trade deal signing

The Hong Kong stock index is looking to close the week on a high, after opening Friday’s market 0.37% above its previous close.

The Hang Seng Index continues to consolidate the gains it has made since mid-December, rising as much as 2.53% this week.

Steepest gain since 13 December

The market sentiment has managed to become more upbeat – following a soft start to the week, thanks to easing US-Iran tensions, as well as announcements of the US-China trade deal signing next week.

Beijing officials said on Thursday that they will fly to Washington from January 13 to 15 to sign the phase one trade deal.

Later, US President Donald Trump also said both countries will begin phase two trade discussions ‘right away’, adding that an actual deal is likely to come after the US Presidential Election in November this year.

Following that, the Hang Seng edged up 1.7% to 28,561 on the day, the sharpest gain since 13 December last year, when US and China agreed to reduce tariffs on each country’s imports.

In terms of individual company stocks, Alibaba Group Holding Limited rose 2.2% to a record high of HK$215.40 per share. The Chinese e-commerce giant has gained 23% in market value since its launch on the Hong Kong bourse last November.

Local automakers also managed to see share prices rally, despite retail vehicle sales declining 7.5% in 2019, based on Passenger Car Association figures. Guangzhou Automobile Group Limited increased 0.2% per share to a 52-week high of HK$10.06, while BAIC Motor Corporation Limited rose 0.5% to HK$4.36 per share.

Good Friday

The optimism has carried over to the week’s final trading day. On Friday morning, the index got off to its best start of the week, opening at a five day-high of 28,665.14 – 0.37% higher than Thursday’s close.

As of 12pm, the benchmark has receded slightly by 0.3% to 28,576.92, but this is still above its previous close of 28,561.

Of note this Friday morning is the performance of Chinese sportswear brand Li Ning Company Limited, currently trading close to its all-time peak price. The company’s Hong Kong’s stocks soared nearly two percent right out the gate, adding to the 9.3% growth it made on Thursday.

Things are also looking bright for Sunny Optical Technology Group Company Limited. Its equity value rose 1.7% to an average of HK$143.90 per share in early trade, which is only a fraction below the 52-week high of HK$149 achieved on 16 December 2019.

Another story from this Friday’s market is the debut of Hong Kong-based electronics manufacturing company Wise Ally International Holdings Limited. Stock price opened as much as 7.2% below its initial public offering asking of HK$0.25 per share.

Learn how you can take advantage of rising and falling market prices with an IG demo account today.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.