SHANGHAI, Oct 20 (Reuters) - Hong Kong stocks hit a near
six-week high on Wednesday, aided by a sustained rebound in
technology names, while China shares were range-bound amid
lingering uncertainty around monetary policies and China
Evergrande Group's debt woes.
** The Hang Seng index rose 1.3% to 26,125.96 in
morning trade and was on track for a fourth straight session of
** In mainland China, the bluechip CSI300 index
rose 0.1%, while the Shanghai Composite Index was
** The Hang Seng Tech Index, which tracks Hong
Kong-listed tech giants including Alibaba Group Holding Ltd
and Tencent Holdings, jumped 3.1%, having
bounced more than 15% from a record closing low hit on Oct. 6.
** Low valuation has attracted bargain hunting after the
sector was knocked down by Beijing's crackdown.
** "The sector's valuation has reached the lower end of its
historical range, we are raising our tactical allocation for the
internet sector from underweight to equal weight," Meng Lei,
strategist at UBS Securities, wrote in a note.
** Reflecting buying interest from mainland investors, the E
Fund CSI Overseas China Internet 50 ETF saw a near
doubling in fund units in the third quarter.
** The mainland China stock market is still searching for
direction, as worries over economic growth slowdown persist amid
the Evergrande debt crisis and power shortages.
** China maintained its benchmark lending rate for
corporate and household loans for an 18th month at its October
fixing, but some analysts think easing is imminent.
** "The big picture is that the economy's rebound is
faltering, and the property sector downturn set to deepen,"
wrote Julian Evans-Pritchard, China economist at Capital
** "We continue to think the PBOC will start lowering policy
rates, including the LPR, before the end of this year, followed
by more reductions in 2022."
** China's real estate stocks fell 1.7%, as new
home prices stalled for the first time since February 2020 in
September amid Beijing's sustained crackdown on speculative
** China's coal and energy stocks
tumbled after the state planner vowed to take all necessary
measures to bring high coal prices back to a reasonable range.
(Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)