Hong Kong Market rises for the first time in seven sessions

The Hong Kong share market closed higher on Tuesday, 24 September 2019, snapping six sessions of losing streak, as investors chased for bottom fishing in recently battered stocks, thanks to developments in the China-US trade saga and after China's central bank governor Yi Gang ruled out an interest rate cut in the near term. Most of sectors were higher, with telecommunications and utility stocks were notable gainers, but industrials and healthcare plays fell. At closing bell, the Hang Seng Index rose 0.22%, or 58.60 points, to 26,281. The Hang Seng China Enterprises Index sank 0.16%, or 16.89 points, to 10,271.03.

Chinese investors are optimistic about the prospects of more fiscal stimulus, after Ning Jizhe, a vice head of the state planner, told a press conference in Beijing that China will step up efforts to stabilise economic growth and after China's central bank governor Yi Gang ruled out an interest rate cut in the near term.

 

US Treasury Secretary Steven Mnuchin said US-China trade talks will resume in two weeks with himself, US Trade Representative Robert Lighthizer and Chinese Vice-Premier Liu He.

Blue chips were mixed. HSBC (00005) added 0.8% to HK$59.95. HKEX (00388) was unchanged at HK$225.8. Tencent (00700) nudged down 0.1% to HK$335.6. China Mobile (00941) gained 0.9% to HK$65.2 after a recent trial test of 5G audio service with Huawei Technologies. AIA (01299) put on 1.5% to HK$76.05.

Pharmaceutical counters were volatile ahead of the announcement of results for the second batch of drugs under group purchasing organization (GPO). CSPC Pharmaceutical (01093) soared 8.5% to HK$16.26 as its monoclonal antibody (ALMB-0168) was granted orphan-drug designation by the US FDA. CSPC Pharmaceutical treatment under development for osteosarcoma -- a cancer that affects the bones -- was granted the "orphan drug" designation by the U.S. Food & Drug Administration. The designation is aimed at encouraging drugmakers to develop treatments for rare diseases by offering incentives such as tax benefits and exclusive marketing rights for seven years. Hansoh Pharmaceutical (03692) jumped 4.6% to HK$25.

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