Liang Xiaodong, co-chief executive officer of China Literature Ltd., left, and Wu Wenhui, co-chief executive officer, pose for photographs while holding glasses of champagne during the company's listing ceremony at the Hong Kong Stock Exchange on Wednesday, Nov. 8, 2017. - Bloomberg
SHANGHAI: Hong Kong stocks rose to a fresh decade high on Wednesday morning, powered by investor enthusiasm for tech stocks, as shares in China Literature Ltd doubled in their red-hot debut.
China shares were also firm, with investors increasing their leveraged bets as they await U.S. President Donald Trump's visit to Beijing.
The Hang Seng index added 0.3 percent, to 29,079.92 points by lunch break, while the Hong Kong China Enterprises Index gained 0.4 percent, to 11,688.35.
In the spotlight was the stellar debut of China Literature , the online publishing arm of Tencent Holdings Ltd .
The stock rose to as much as HK$100 in early trade, compared with its initial public offering (IPO) price of HK$55 per share, underscoring investor eagerness for tech stocks.
Analysts said the successful IPOs of "New Economy" stocks such as China Literature and Zhongan Online P&C Insurance Co could instil fresh blood into a market traditionally dominated by banking and property giants.
"Tencent has been leading the market higher," said Stanley Chan, head of research at Emperor Securities Ltd, referring to the benchmark heavyweight that gained over 1 percent to a fresh record on Wednesday morning.
"In addition, more and more 'New Economy' stocks are being warmly embraced by investors ...and are gradually changing the market structure."
Chan said the Hong Kong market still has room to rise, as it has shrugged off fears of additional rate hikes in the U.S, as well as concerns of slower economic growth in China.
Most sectors rose on Wednesday, with tech and consumer sectors both rising roughly 1 percent.
CHINA STOCKS
On the mainland, the blue-chip CSI300 index rose 0.8 percent, to 4,086.07 points, while the Shanghai Composite Index gained 0.5 percent, to 3,431.98 points.
Reflecting rising risk appetite, outstanding margin lending - money investors borrow to buy stocks - has surpassed 1 trillion yuan in recent sessions, hitting the highest level since early 2016.
October trade data was mixed. Exports last month lagged market expectations, rising 6.9 percent from a year earlier while imports beat forecasts, growing 17.2 percent. - Reuters
Limited time offer:
Just RM5 per month.
