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Dow Jones Newswires: Chinese tech sector leads Hong Kong market rebound


Shares of Chinese technology companies rebounded in Hong Kong after a report that U.S. audit officials have completed the first round of on-site inspection of U.S.-listed Chinese companies.

The Hang Seng Tech Index
which tracks 30 technology companies listed in the city, jumped as much as 11% in afternoon trading and finished up 7.4%. Index heavyweights Alibaba Group Holding Ltd.


advanced 10%, Tencent Holdings Ltd.

gained 7.7% and Inc.


was 12% higher.

The tech rebound has helped push the city’s benchmark Hang Seng Index

5.3% higher to 16161.14, recouping all its losses since two weeks ago, when Chinese leader Xi Jinping’s consolidation of power after the party congress spooked investors.

Bloomberg reported Friday that U.S. regulatory officials finished on-site inspection of Chinese companies ahead of schedule and may leave Hong Kong as early as this weekend.

The possible positive development caused foreign investors to cover their short positions on tech stocks, BNP Paribas Wealth Management chief investment adviser Grace Tam said.

“There have been a lot of short positions on the China tech names. If the audit progress is really good, and the [American depositary receipts] are going to stay in U.S. market, then they don’t want to have so many short positions,” Ms. Tam said.

But she cautioned that the rebound might be short-lived as “maybe we still need to wait for a few weeks to see the preliminary findings of the auditing.”

Investors are also watching for signs that China may be easing its strict zero-Covid policy, which has led to widespread lockdowns and suppressed economic activity. Speculation that Beijing may be looking into reopening options boosted Chinese shares this week.

While Ms. Tam thinks the market may already have hit bottom, market upside also appears limited. “We need to wait for the plan of reopening, or any result from the auditing or even for the property sector, which is still very weak for now,” she said.

Write to Clarence Leong at

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