Hang Seng Index climbs 190 points as auto stocks rally on June sales

The Hang Seng Index opened 190 points, or 0.83%, higher at 23,071, led by automakers after June sales data showed surging export growth for Chinese EV makers.

"BYD is on track to become the world's largest automaker within five years, driven by export growth and technological advances including battery upgrades and fast-charging capabilities," Wang Chuanfu, chairman of BYD Co., said at the company's annual shareholder meeting last month.

BYD (1211.HK) jumped 4.9% at the open after reporting June sales of 403,472 vehicles, up 5.5% from a year earlier — its second consecutive month of growth after an eight-month decline. Overseas sales surged 94.7% to 175,349 vehicles, cushioning a 22% decline in its home market. Rival Leapmotor reported a 95% year-on-year increase to 93,376 electrified vehicles. Li Auto (2015.HK) gained 3.5%, Geely Auto (0175.HK) rose 3.1% and Xpeng (9868.HK) climbed 4.9%.

The Hang Seng Tech Index added 56 points, or 1.25%, to 4,528, while the Hang Seng China Enterprises Index rose 54 points to 7,613. Tencent Holdings (0700.HK) opened at HKD 442.6, up 3.2%, and Alibaba Group (9988.HK) gained 2.6%. Meituan (3690.HK) rose 2% and JD.com (9618.HK) climbed 3.8%.

The auto sector rally comes as China's passenger car sales are forecast to fall 11% this year, according to the China Passenger Car Association, highlighting the importance of overseas markets for domestic EV makers. BYD is nearing a decision on its second European plant after Hungary, a senior adviser to the company's European operations said Wednesday. The broader market advance also reflected improved risk appetite for Hong Kong equities, with all three major indices opening in positive territory.

This article is for informational purposes only and does not constitute investment advice.