Hong Kong stocks up, halt 3-day decline; Henlius soars by over a fifth on buyout plan
The Hang Seng Index climbed 0.9 per cent to 18,194.14 as of 10am local time. The Hang Seng Tech Index gained 0.4 per cent and the Shanghai Composite Index added 0.1 per cent.
Among the major gainers on the benchmark, property developer Longfor Group Holdings advanced 4 per cent to HK$18.50 and Mengniu Dairy also rallied 4 per cent to HK$13.88. Sportswear maker Li Ning gained 4.2 per cent to HK$18.56.
Bargain hunters returned to look for cheap stocks after the Hang Seng Index shed 8.2 per cent through Monday from a high struck on May 20. The 82 members on the benchmark trade at an average of 8.9 times projected earnings for this year, the second cheapest among the world’s key markets, according to Bloomberg data.
Sentiment was also aided by a slew of privatisation plans. Shanghai Henlius Biotech was trading 18 per cent higher at HK$22.20, after rising as much as 21.3 per cent following Fosun International’s proposed to buy the stake it does not already own offering a price of HK$24.60 per share to the shareholders. It came on the heels of Midea Real Estate Holding that said on Monday it would privatise its property development unit.
Other major Asian markets also rose. Japan’s Nikkei 225 climbed 0.3 per cent, while South Korea’s Kospi gained 0.4 per cent and Australia’s S&P/ASX 200 added 0.8 per cent.
