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Sunday, July 7, 2024

Hong Kong stocks rise to seven-week high on property market speculation as China promises regulatory predictability amid market intervention

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Hong Kong stock Property developers rose to a seven-week high on speculation that the city government will lift more restrictions this month to stem the industry’s downturn. China has pledged to increase policy transparency as state funds step up intervention. HSBC soared ahead of its 2023 earnings release.

The Hang Seng Index rose 3% to 16,735.92 at the local noon trading break, reaching its highest level since January 2. The high-tech index rose 4.5%, and the Shanghai Composite Index rose 1.7%.

Sun Hung Kai Properties rose 3.6% to HK$75.05, Henderson Land rose 2.3% to HK$21.80, Wharf REIC rose 1.3% to HK$26.60 and New World Development rose 5.4% to HK$9.86. became. The Hang Seng Real Estate Index rose 3.5%, hitting a one-month high.

Chinese tech stocks also rose, with Alibaba Group up 2.6% to HK$74 and Tencent up 3.1% to HK$293. Meanwhile, HSBC added 1.1% to his HK$63.35 after Annual profit growth was slower than expected. Its subsidiary Hang Seng Bank rose 3.4% to HK$84.65.

The Hang Seng index rose 8.1% this month, recovering from a 14-month low in January, as the Chinese government stepped up measures to restore investor confidence. The February recovery restored US$200 billion in value to the city’s stock market by February 20, according to Bloomberg data.

Remove curbs on properties as people are ‘losing assets’: Chief Midland

Treasurer Paul Chan Mopo will table the city’s budget on February 28 to put in place measures for traders to boost the local economy. Some industry veterans are calling on Mr. Chan to remove hurdles in the market caused by falling asset values. The government imposed regulations in the 1990s to quell the speculative frenzy.

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Bridge crowded with tourists during Chinese New Year holidays

Bridge crowded with tourists during Chinese New Year holidays

“The government continued to provide liquidity and support to the market,” Kelly Chan, investment director and head of multi-asset at Value Partners, said in a note Wednesday. Still, he added, policy specifics are sure to improve sentiment.

Longfor jumped 11% to HK$10.14, while peer China Resources Land rose 4.9% to HK$25.60, leading the gains for mainland developers. Domestic commercial banks on Tuesday cut the five-year loan prime rate by a record 25 basis points, a sign that policymakers are concerned about the weakening housing market.

Other major Asian markets mostly fell, following the drop in U.S. stocks overnight. Japan’s Nikkei Stock Average fell 0.5%, Australia’s S&P ASX 200 index fell 0.7% and South Korea’s Kospi index fell 0.3%.



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