The Hang Seng Index jumped to 27,878.22, up 1.2 percent or nearly 330 points, on Friday as investors’ confidence improved after US President Donald Trump’s acknowledgment of his defeat in the November presidential election, and his pledge to ensure a smooth transition of power to Joe Biden.

Friday brings the rally in the first week of 2021 to 2.4 percent. Market turnover rose to HK$270.3 billion (US$34.86 billion) from HK$227.8 billion on Thursday. Leading the gains, blue chip company AIA Group added nearly 2 percent to close at a record high of HK$99. Geely Auto soared 19.6 percent to close at HK$33.25, hitting a new high. Tech heavyweight Tencent edge up 0.8 percent at HK$573, while Alibaba Group advanced 1.4 percent to close at HK$224.2. The Hong Kong Exchange rose 2 percent to HK$452.

Castor Pang, head of research at investment services firm Core Pacific-Yamaichi, said a favorable stock market can be expected in Hong Kong. “With the capital from the Chinese mainland going into Hong Kong market, it’s possible that the Hang Seng Index will set a record performance in the near future, surpassing 33,484 (that it reached) in 2018.”

Geely shot up nearly 20 percent after news said the carmaker is planning a venture with search-engine company Baidu to make electric cars.

Gains were limited by the drops of three China’s telecom stocks due to the New York Stock Exchange’s delisting plan and the removal of the trio from global stock and bond benchmarks — the MSCI, FTSE Russell and S&P Dow Jones Indices. China Mobile and China Telecom fell 4.2 percent and 3.4 percent to HK$41.5 and HK$1.96 respectively, while China Unicom pared losses of 0.8 percent to HK$4.41 after diving as much as 11.2 percent earlier. This week, China Unicom lost 0.9 percent, while China Mobile and China Telecom plunged 6.1 percent and 8.8 percent respectively.

“Not only these three telecoms, more companies like Tencent, Alibaba and oil companies may also face sanctions such as delisting and being removed from benchmarks, but the trend would come to an end after Trump steps down” on Jan 20, Castor said.

In less than two weeks, Biden will take the inaugural oath and move into the White House. “Stock prices (of these companies) will bottom out as Biden takes office,” Castor added.