By Martin Mou
Meituan Dianping shares set a fresh record intraday high Wednesday as Chinese tech stocks rallied in Hong Kong, buoyed by signs that more U.S.-listed Chinese companies are seeking secondary listings closer to home.
Shares of Meituan Dianping touched a high of 160.70 Hong Kong dollars (US$20.73) in morning trade before pulling back to HK$157.70, still up 7.2%. That broke the record set last month after China's largest food-delivery company posted 1Q results above market views.
Chinese e-commerce giant Alibaba Group climbs 4% to HK$208.00 while smartphone maker Xiaomi Corp. is up 2.4% at HK$12.78.
Tech shares are being boosted by hopes that the upcoming Hong Kong listing of online-games company NetEase Inc. means more Chinese companies will seek secondary listings in the city. Analysts say that would increase liquidity in the Hong Kong stock market and improve shares' upsides.
The rally also come after the compiler of Hong Kong's benchmark Hang Seng Index last month changed its rules to allow the inclusion of companies with weighted voting rights and those with secondary listings.
Following the revision, Alibaba, Xiaomi and Meituan Dianping could be admitted into the Hang Seng as early as August, Citic Securities says.
Wednesday's rise will further cement Meituan Dianping, whose market value stands at HK$785.06 billion, as the third-most-valuable Chinese internet company after Alibaba and Tencent Holdings.
Write to Martin Mou at firstname.lastname@example.org