The Hang Seng Index rose 1.7% to 16,624.84 at the local noon trading break, while the tech index rose 2.6%. Both indexes have regained some of their losses from last week. The city’s financial markets were closed on Monday and Tuesday for Christmas. The Shanghai Composite Index rose 0.5%.
Elsewhere, Alibaba Group rose 2.7% to HK$73.80, and Meituan rose 2.2% to HK$78.30. EV maker BYD rose 1.3% to HK$205.20, while Li Auto rose 6.8% to HK$136.90.
“We believe the market’s concerns about an industry crackdown are overdone,” Jefferies analysts said in a note over the weekend. He added that the draft regulations are aimed at fostering a healthy gaming sector and the market needs to monitor the outcome.
Meanwhile, profits of China’s industrial enterprises rose 29.5% year-on-year in November, accelerating from a 2.7% pace in October, the Bureau of Statistics said on Wednesday.
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“It’s warm inside the refrigerator”: Below freezing Beijing, breaking record for coldest December
“It’s warm inside the refrigerator”: Below freezing Beijing, breaking record for coldest December
The Hang Seng Index fell 2.5% in December, marking the fifth consecutive month of declines and the longest losing streak since 2018. The benchmark has fallen 17.4% this year and is on track for an unprecedented four-year decline.
Latecomers to the index, Lee Auto, Lenovo and Xiaomi, were the year’s biggest winners, rising 49% to 78%. Li-Ning, Meituan and Country Garden Services had the worst performance, dropping 56-71%. In the land market, the CSI300 has fallen nearly 14% this year. Advanced Micro-fabrication and Naura Technology topped the list with his gains of 5.1% to 6.2%.
Elsewhere, Zhejiang Long Technology soared 79% to 30.08 yuan on its first day of trading in Shanghai.
Asian markets rose. Japan’s Nikkei Stock Average rose 1.1%, Australia’s S&P/ASX 200 index rose 0.8% and South Korea’s Kospi index rose 0.4%.