By Justina Lee
Hong Kong-listed auto and telecommunications stocks were higher at midday trade Monday, propelled by China’s policy moves and a relative lack of exposure to potentially higher interest rates in the U.S., analysts say.
Auto stocks were among the best performers on the Hang Seng Index, with Geely Automobile 4.6% higher, taking its gains this month to 27% while notching its eighth daily gain in 10 sessions. Great Wall Motor advanced 5.1%, taking June’s gains to 13%.
Automobile makers have been supported recently by growing demand for electric vehicles, coupled with Beijing’s goal of boosting sales of new energy vehicles to curb the country’s reliance on fossil fuels, brokerage IG said. They are likely to remain buoyed in the near term, IG added, citing their lower exposure to changes in U.S. interest rates, compared with stocks in sectors such as banking.
Telco stocks were also higher, with state-owned China Telecom up 8.2% after saying that its cash distributed in 2021 will amount to at least 60% of profit attributable to equity holders. China Mobile gained 3.4% and China Unicom rose 1.9%.
The Hang Seng Index was 1.5% lower, weighed overall by the U.S. Federal Reserve’s hawkish signals in recent days.
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(END) Dow Jones Newswires
June 21, 2021 02:05 ET (06:05 GMT)
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