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Hong Kong Market surges 2.7%

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Capital Market
Last Updated : Nov 07 2022 | 3:16 PM IST
Hong Kong share market finished session sharply higher on Monday, 07 November 2022 as traders cheered Chinese policymakers pledge last week to prioritize economic growth and press on with reform and on hopes of a reopening in the world's second-biggest economy even after Chinese officials reiterated their commitment to a strict COVID containment approach.

At closing bell, the benchmark Hang Seng Index surged 434.77 points, or 2.69%, to 16,595.91. The Hang Seng China Enterprises Index was up 153.69 points, or 2.8%, to 5,636.21.

President Xi Jinping's pledged last week to prioritize economic growth and opening-up at the Shanghai International Import Expo, where the Chinese securities regulator vowed to attract more foreign capital, easing fears that ideology could take precedence as President Xi Jinping began a new leadership term and disruptive lockdowns continued with no clear exit strategy in sight.

Beijing disappointed investors hoping for a quick reopening and said it is sticking with a strict COVID-19 containment strategy nearly three years into the pandemic. Chinese health officials said on Saturday the country would maintain its "dynamic-clearing" approach to COVID-19 cases as soon as they emerge, dashing hopes for a quick reopening of the economy that had fuelled last week's epic gains.

The pandemic situation is still complicated, a National Health Commission spokesman said on Sunday, adding that local governments should ensure businesses and people's lives are not impacted by the ongoing curbs. Confirmed new cases nationwide climbed to 5,643 from 4,610 on Sunday, according to government data, and local officials in China's south city Guangzhou have warned its citizens of more infection risks.

Traders shrugged off more data today signalling a deeper slowdown in China's economy. Exports unexpectedly declined 0.3 per cent last month from a year earlier, while imports weakened 0.7 per cent, the customs bureau said.

Among blue chips, Tencent jumped 2.9% to HK$245.40, JD.com surged 3.1% HK$177 and Meituan climbed 2.3% to HK$153. HSBC leapt 3.7% to HK$43 and bourse operator Hong Kong Exchanges and Clearing rose 5.4% to HK$259.60. Country Garden led property developers higher with an 11% rise to HK$1.41.

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First Published: Nov 07 2022 | 2:43 PM IST

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