Chinese tech stocks pushed the Hong Kong stock index to its highest level in nearly a month, supported by the conclusion last week of an antitrust probe into food delivery group Meituan with a lower penalty provided that.
The city’s benchmark Hang Seng index rose 2.4% on Monday, taking it to its highest level since Sept. 14, while the Hang Seng Tech index jumped 2.8%.
Meituan’s share price jumped 9.6% on Monday, while Alibaba gained as much as 9.7%. The boost spread across the entire Chinese industry, with search engine Baidu and online retailer JD.com increasing 7.5% and 5.5% respectively.
The relief rally came after the Chinese antitrust regulator announced the results of its antitrust investigation into Meituan on Friday evening and fined the company Rmb 3.4 billion ($ 530 million) for abusing its market position.
The penalty, accounting for around 3% of Meituan’s revenue in 2020, was lower than expected and well below the record $ 2.8 billion imposed on Alibaba, Jack Ma’s e-commerce group, in April after the first antitrust investigation of this type. Alibaba’s penalty was the equivalent of around 4% of its 2019 revenue.
Beijing-based Lenovo, the world’s largest computer maker by unit sales, fell 18% in Hong Kong on Monday, after announcing in a regulatory filing on Friday that it would revoke a scheduled Star Marketplace listing. from Shanghai.
The sale of shares would have been by far the largest to use Chinese certificates of deposit, a facility modeled on US-listed US certificates of deposit that allows domestic investors to buy renminbi-denominated shares in companies. Chinese incorporated abroad.