Hong Kong's stock market is on a festive high, but can the Santa Rally really last into the new year? That's the million-dollar question investors are asking as optimism fuels a second day of gains. Here’s the breakdown: Hong Kong stocks surged for the second consecutive day on Tuesday, riding the wave of holiday cheer and investor hopes that this upward trend will spill over into 2024. But here's where it gets controversial—while the Hang Seng Index inched up 0.2% to 25,848.99 by midday, mirroring its 0.2% gain from the previous session, the Hang Seng Tech Index dipped by 0.4%, leaving some to wonder if the tech sector is missing out on the party. Meanwhile, mainland China’s markets seemed to join the celebration, with the CSI 300 Index rising 0.5% and the Shanghai Composite Index gaining 0.3%.
Leading the charge were logistics giant ZTO Express Cayman, up 0.6% to HK$166.10, and Hong Kong Exchanges & Clearing, which climbed 0.7% to HK$410. E-commerce titans Alibaba Group Holding and JD.com also flexed their muscles, with Alibaba rising 0.7% to HK$147.40 and JD.com jumping 1% to HK$113.40. Even chipmaker SMIC and property developer Sun Hung Kai Properties got in on the action, with gains of 0.5% and 1.4%, respectively. But this is the part most people miss—not every stock is basking in the glow. Short-video platform Kuaishou Technology plunged 3.6% to HK$64.30 after disclosing a cyberattack, while Tencent Holdings, the powerhouse behind WeChat, slipped 1.5% to HK$605.50. Blind-box toymaker Pop Mart and travel agency Trip.com also took hits, dropping 0.5% and 1.4%, respectively.
And then there’s the elephant in the room: distressed mainland developer China Vanke. Despite creditors extending its bond grace period to January 28, the stock fell 2% to HK$3.47 after a proposal to delay principal repayment by a year was rejected. Is this a sign of deeper troubles in China’s property sector, or just a temporary setback? What do you think? Are the gains in Hong Kong’s market sustainable, or is this rally too good to last? Let us know in the comments—we’d love to hear your take!
