Chinese stocks listed in Hong Kong headed for their best day in August on Thursday on the back of strong gains among tech stocks. The Hang Seng China Enterprises Index advanced by almost 3%, while the stock market’s Tech Index rose as much as 4.2%. The CSI 300 Index, comprising onshore Chinese stocks, rose by over 1%.
Food delivery software developer Meituan emerged as the leader of the Hang Seng China Enterprises Index as its stock gained as much as 7.8%. The company is set to release its earnings later in the day, with analysts expecting a 32% rise in sales over the second quarter. Baidu Inc. gained 6% after the company reported sales that rose to the highest level in over a year. The search engine operator joined fellow internet giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd. in launching a rebound following a period of struggle.
“We are slightly more optimistic on China than we were three months ago,” Sudarshan Murthy, a portfolio manager at GQG Partners Emerging Markets Equity Fund explained. His firm is gradually increasing its exposure to Chinese companies.