Tech Rally Puts China Stocks on Track for Best Day This Month

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A gauge of Chinese stocks listed in Hong Kong headed for its best day so far in August, as optimism over earnings drove strong gains in technology shares.

Food delivery behemoth Meituan’s stock surged as much as 7.8% to be the biggest contributor to the advance on the Hang Seng China Enterprises Index, which climbed nearly 3%. The company’s results due later Thursday are expected to show sales surged 32% in the second quarter.

Baidu Inc.’s shares climbed 6%, extending their rally after the company earlier this week reported sales that rose the most in more than a year. The search-engine operator joined China’s largest internet firms such as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. in rediscovering growth. The gains are coming “on the back of solid earnings from Chinese companies lately,” said Redmond Wong, a market strategist at Saxo Capital Markets.The Hang Seng Tech Index jumped as much as 4.2%. The rally came on the heels of a stellar set of results from Nvidia Corp., the standard bearer of the artificial intelligence theme, which sparked gains in technology shares across Asia. The CSI 300 Index, a benchmark of onshore Chinese stocks, rose more than 1%.

GQG Partners Emerging Markets Equity Fund, one of the world’s biggest fund investing in developing-nation stocks, is slowly rebuilding its exposure to Chinese internet firms, Bloomberg News reported on Wednesday.

 

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