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Hong Kong: Market rebounds on China's reopening

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Capital Market
Last Updated : Dec 28 2022 | 7:50 PM IST
Hong Kong share market finished session higher on Wednesday, 28 December 2022, after resuming from an extended holiday weekend, following China's exit from its rigid Covid-19 restrictions and as Chief Executive John Lee announced further easing of Covid measures in the city.

At closing bell, the benchmark Hang Seng Index surged 305.85 points, or 1.56%, to 19,898.91. The Hang Seng China Enterprises Index was up 129.86 points, or 1.95%, to 6,772.76.

China will stop requiring inbound travellers to go into quarantine starting from Jan 8, the National Health Commission said on Monday. It will also downgrade the seriousness of Covid-19 as it has become less virulent and will gradually evolve into a common respiratory infection.

Hong Kong will remove all mandatory PCR tests for inbound travelers, Chief Executive John Lee said in a press briefing announcing further easing of the city's Covid restrictions. Lee added the city will also cancel the vaccine pass scheme, adding that the government will adopt more targeted measures for elderly vaccination. Hong Kong will also remove all social distancing measures, including a ban on group gatherings of more than 12 people, Lee said, adding the measures will take into effect Dec. 29.

Shares of Hong Kong-listed reopening stocks popped following China's recent announcement to drop quarantine requirements for inbound travelers. Hotpot restaurant operator Haidilao advanced 4.8% to HK$22.80, and sportswear brand Li Ning climbed 1.9% to HK$68.90. Alibaba Group Holding added 1.4% to HK$87.70, and Tencent Holdings climbed 1.9% to HK$326.20.

Hong Kong-listed casino operators similarly saw boosts, with MGM China rising and Wynn Macau climbing nearly 2%. Galaxy Entertainment rose 1.5% and SJM Holdings inched up 1.8%. Travel related stocks also saw gains, with China Eastern Airlines rising 1.22% while China Southern Air gained 0.8%.

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First Published: Dec 28 2022 | 5:37 PM IST

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