Chinese tech stocks have pushed Hong Kong’s stock index to its highest level in almost a month, driven by the conclusion last week of an antitrust probe into food supply group Meituan with a lower-than-expected fine.
The Hang Seng City’s benchmark index rose as much as 2.4 percent on Monday, taking it to its highest level since September 14, while the Hang Seng Tech index jumped as much as 2.8 percent.
Meituan’s share price rose as much as 9.6 percent on Monday, while Alibaba gained as much as 9.7 percent. The momentum spread across the Chinese sector, with search engine Baidu and online retailer JD.com standing at 7.5 and 5.5 percent, respectively.
The relief rally came after China’s antitrust regulator announced the results of its antitrust probe in Meituan late Friday and fined the company $ 3.4 billion ($ 530 million) for abusing its market position.
The penalty, which represented about 3 percent of Meituan’s revenue in 2020, was lower than expected, and much less than the record $ 2.8bn against Alibaba, Jack Ma’s e-commerce group, in April after the first such an antitrust investigation. Alibaba’s penalty was equal to about 4 percent of its revenue in 2019.
Beijing-based Lenovo, the world’s largest computer maker in terms of unit sales, fell as much as 18 percent in Hong Kong on Monday, after announcing in a regulatory committee on Friday that it would scrap a planned list on Shanghai’s Star brand.
The share sale would have been by far the largest to use Chinese depository receipts, a facility modeled on U.S. listing of U.S. deposits that allow domestic investors to buy renminbi-denominated shares in Chinese companies abroad.