Hong Kong: Stocks close higher in half-day trade ahead of Chinese New Year holidays

[HONG KONG] Hong Kong's main Hang Seng index and China's H-shares index ended firmer in half-day trade on Monday (Jan 31) with technology stocks leading gains, ahead of market holidays in the city for most of the week.

At the close of trade, the Hang Seng index was up 252.18 points, or 1.07 per cent, at 23,802.26. The Hang Seng China Enterprises index rose 1.7 per cent to 8,349.95. Hang Seng Technology Index rose 2.4 per cent.

Hang Seng index ended January 1.7 per cent higher, Hang Seng China Enterprises index up 1.4 per cent, while the Technology index was down 4.5 per cent Mainland Chinese markets will be shut for a week-long Chinese New Year holiday, starting Jan 31.

Hong Kong markets will be closed from Feb 1 to Feb 3 and will resume on Feb 4 China has selected 15 pilot zones and identified several areas of application to "carry out the innovative application of blockchain" technology, according to a joint government statement on Sunday, sending tech stocks up in Hong Kong.

Data out on Sunday showed China's factory activity slowed in January as a resurgence of Covid-19 cases and tough lockdowns hit production and demand, and that capped the upside of the market.

The sub-index of the Hang Seng tracking energy shares dipped 0.4 per cent, while the IT sector rose 3.27 per cent, the financial sector ended 0.09 per cent lower and the property sector rose 0.42 per cent.

The top gainer on the Hang Seng was Meituan, which gained 5.58 per cent, while the biggest loser was Budweiser Brewing Company APAC, which fell 4.2 per cent.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.58 per cent, while Japan's Nikkei index closed up 1.39 per cent.

The top gainers among H-shares were Kuaishou Technology up 6.61 per cent, followed by Innovent Biologics, gaining 6.34 per cent and Meituan, up by 5.58 per cent.

The three biggest H-shares percentage decliners were Alibaba Health Information Technology, which was down 1.52 per cent, China Resources Beer, which fell 1.02 per cent, and JD Health International, down by 0.95 per cent. REUTERS