Hong Kong stock markets resume gains, with Alibaba and Tencent leading tech gains

The Hang Seng index rose 2.8 percent to 22,736.87 on Friday, after losing as much as 1.3 percent in earlier trading. The Tech Index increased by 5%. Markets on the continent are closed until October 7 for the holiday.

WeChat owner Tencent gained 2.4 percent to HK$477.60. Alibaba gained 3.5 percent to HK$113.90 and e-commerce firm JD.com rose 7.3 percent to HK$182.80. Online travel agency Trip.com gained 7 percent to HK$543.

Drug manufacturer Wuxi Biologics rose 14.5 percent to HK$21.45 and Wuxi Apptec rose 11.6 percent to HK$67.10 amid media reports that they were considering selling some operations after being targeted US National Security Act.

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Boom or bust: How sustainable is China’s stock craze?

“Many investors wanted to see the impact of this policy to justify a long-term market turnaround,” John Choi, an analyst at Daiwa Securities, wrote in a note to clients. This rally is getting more exposure as many stocks continue to trade below their three- and five-year averages, he said, adding that e-commerce companies will be among the key beneficiaries of further stimulus measures.