Hong Kong Market rises 0.52%

Headline indices of the Hong Kong stock market finished session higher on Monday, 17 February 2020, as investors sentiments cheered by Beijing additional steps to boost the slowing economy hammered by the double whammy of the US-China trade war followed by the coronavirus outbreak. At closing bell, the benchmark Hang Seng Index advanced 0.52%, or 144 points, to 27,959.60. The Hang Seng China Enterprises Index was up 0.87%, or 94.39 points, to 10,957.84.

The China's central bank and finance minister announced a slew of measures to support the economy as the country battles an outbreak of a new virus that has killed 1,770 people and infected nearly 70,000. On Monday, China's central bank tapped its medium-term lending facilities (MLF) to inject 100 billion yuan through seven-day reverse repos. The People's Bank of China will offer the one-year MLF rate at 3.15% down from 3.25%.

 

Over the weekend, China's central bank and financial regulators offered additional funds to banks. The bank regulator will ensure that small and medium enterprises (SMEs) get access to the 537 billion yuan (US$77 billion) of credit lined up to help them survive the business turmoil unleashed by the coronavirus epidemic.

In an effort to alleviate the shock of the virus outbreak on businesses, China is planning targeted tax cuts while increasing government spending, Finance Minister Liu Kun wrote Sunday in China's Communist Party magazine Qiushi. The Ministry of Finance said Saturday it would provide 8 billion yuan in a second round of support for virus prevention and control efforts. As of Friday, all levels of finance ministries in China had allocated 90.15 billion yuan in support, according to the central government. The People's Bank of China earlier this month pumped 1.7 trillion yuan into the financial system.

Sunny Optical climbed 2.8% to HK$134, after reporting shipment volumes of handsets rose by 33.2% and handset camera modules increased by 37.6% In January year-on-year.

Wuling Motors Holdings plunged 6.4% to HK$0.248, after warning its net profit attributable to shareholders is likely to drop more than 80% in 2019 year-on-year.

Anta Sports jumped 4.6% to HK$71.30. It said it had reopened about 40% of its mainland stores as of Friday but warned it does not expect to recover from the impact of the coronavirus before the second half of the year.

China Evergrande Group rose 1.4% to HK$19.14, as the country's third biggest builder by value said it will discounts of up to 25% at all of its projects across the country. The step came as the coronavirus epidemic threatens China's critical housing sector.

Ping An Good Doctor surged 4% to HK$77.20 as traders piled in on optimism about the surge in users of its online health care platform amid the unprecedented lockdown of more than 50 million people in China.

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