Hong Kong stocks add to last week’s gains as investors shrug off uncertainty

EV makers BYD and Li Auto gain along with technology companies, while Pop Mart slumps after JPMorgan downgrade

The Hang Seng Index added 0.5 per cent to 26,506.25 as of 10.50am local time, after losing as much as 0.4 per cent earlier. The Hang Seng Tech Index advanced 1.4 per cent. On the mainland, the CSI 300 Index rose 1 per cent and the Shanghai Composite Index lifted 0.1 per cent.

Electric-vehicle maker BYD added 3.4 per cent to HK$108, while peer Li Auto gained 3.3 per cent to HK$93.40. Online-game provider NetEase advanced 2 per cent to HK$241.20, and e-commerce company Alibaba Group Holding rose 3.4 per cent to HK$182.20. Battery manufacturer Contemporary Amperex Technology jumped 7.4 per cent to HK$464.80, the highest level since it was listed in Hong Kong in May.

Toymaker Pop Mart slumped 6.7 per cent to HK$258.20 after JPMorgan downgraded its shares to neutral, citing a lack of catalysts and an unattractive valuation. Search-engine giant Baidu fell 1 per cent to HK$114, while logistics firm ZTO Express declined 1.6 per cent to HK$146.70 and mainland developer Longfor lost 3.8 per cent to HK$11.45.

US-China talks in Madrid entered a second day on Monday, with discussions centred on trade issues and the fate of ByteDance’s TikTok, which faces a deadline for a deal to keep operating in the United States. US President Donald Trump told reporters on Sunday that the negotiations with China were “going fine”, adding that TikTok’s fate depended on China’s actions.