Wednesday, November 13, 2024

Hong Kong stocks advance on additional Chinese measures to support market, Evergrande liquidation shocker limit rises

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stock Hong Kong after China’s market regulator halted securities lending for restricted stocks listed on mainland exchanges to stabilize stock prices and added a series of measures to prevent a market crash. ‘s stock price rose. China Evergrande lost a lawsuit to avoid liquidation and sank.

After rising as much as 1.9%, the Hang Seng Index rose 0.9% to 16,102.02 at the local noon trading break. The index has rebounded 4.2% from a 15-month low last week. The high-tech index rose 0.6%, and the Shanghai Composite Index rose 0.3%.

Alibaba Group rose 2.9% to HK$72.95, e-commerce peer JD.com rose 2.7% to HK$93.80, while Baidu rose 3.2% to HK$106.40. China Unicom rose 5.6% to HK$5.62, Sinopec rose 3.9% to HK$4.22 and PetroChina rose 2.6% to HK$5.86.

The long four rose 0.4% to HK$9.48 and the China Resources Rand rose 0.8% to HK$24.40 after the city of Guangzhou in southern Guangdong province lifted restrictions on the purchase of large hams.

Exchange Square, where the Hong Kong Stock Exchange (HKEX) is located, is the financial center of Central. 19JAN24 SCMP/Xiaomei Chen

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The China Securities Regulatory Commission said it would ban major shareholders from lending their shares under lock-ups or restrictions starting Monday. The decision was announced over the weekend and comes after China’s central bank. Surprisingly lowered bank reserve requirements last week To strengthen market sentiment.

China bans securities lending to investors during restricted period

“The market remains in a recovery phase as sentiment recovers,” CICC strategist Kevin Liu said in a note on Sunday. “A true trend reversal requires more targeted policy catalysts,” he added.

Still, Hong Kong’s stock benchmark index has fallen 5.6% so far this month, on track for its worst January since a 6.7% drop in the first month of 2020.

Meanwhile, China Evergrande fell 21% to HK$0.163.ordered by a Hong Kong court Mainland developers withdraw This is because they were unable to present a satisfactory restructuring plan to repay their creditors. Evergrande New Energy Vehicle, the company’s car manufacturing unit, fell 18% to HK$0.229. Evergrande Property Services fell 2.5% to HK$0.39. After the verdict, all those transactions were suspended.

US lawmakers move to ban military contracts with Chinese biotech companies

Elsewhere, Wuxi Biologics erased gains and fell 5.7% to HK$23.15, extending Friday’s 17% decline.office denied allegations in the US bill proposal CEO Chen Zisheng has ties to the Chinese military. Sister company Wuxi Apptec, which is also subject to the bill, fell 6% to HK$60.75.

02:31

China’s GDP: Beijing’s long to-do list for economic growth in 2024

China’s GDP: Beijing’s long to-do list for economic growth in 2024

Sentiment is likely to be cautious this week as further weak economic data is likely to be released. China’s manufacturing industry is likely to remain in contraction territory in January for the fourth straight month, according to economists tracked by Bloomberg. A government report last week showed industrial profits fell by 2.3% in 2023, the second consecutive year of decline.

The Fed is expected to keep its key interest rate unchanged at its first policy meeting of the year later this week, according to odds calculated from federal funds futures contracts compiled by CME Group.

Major major markets in Asia rose. South Korea’s Kospi rose 1.4%, Australia’s S&P/ASX 200 rose 0.3% and Japan’s Nikkei 225 rose 1.1%.



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