Hong Kong Market completes a three-day advance on tariff speculation

Hong Kong stock market finished higher for third session in row on Wednesday, 29 September 2021, on the back of gains in Chinese power producers on tariff speculation after reports that Chinese government is considering allowing power generators to charge higher prices for industrial consumers.

At closing bell, the benchmark Hang Seng Index rose 0.67%, or 163.11 points, to 24,663.50. The Hang Seng China Enterprises Index added 0.46%, or 40.14 points, to 8,760.44.

China is suffering from a worsening power crunch, as a shortage of coal supplies and toughening emissions standards have pushed coal prices to record highs. The power shortage has hurt production and sparked widespread electricity curbs, dimming the economy's growth outlook. On Wednesday, China's all-powerful economic planning agency attempted to reassure residents and businesses in areas hardest hit by shortages that it has the coal use and supply situation under close watch.

 

Shares of Chinese power producers rebounded on speculation the government will consider lifting electricity prices to shore up supply amid forced outages. Datang Power jumped 2.1% to HK$1.46 while Huadian Power added 1.7% to HK$3.08 and China Gas Holdings surged 2.7% to HK$22.50.

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