Hong Kong: Market rises for third day

Hong Kong share market finished higher for third consecutive session on Thursday, 23 December 2021, as investors took heart from tracking overnight advances on Wall Street after strong US economic indicators and U.S. regulators approval of an oral COVID-19 drug developed by Pfizer Inc. Market gains led by Tencent Holdings after gifting a surprise US$16.4 billion dividend windfall to shareholders

At closing bell, the benchmark Hang Seng Index was up 0.4%, or 91.31 points, to 23,193.64. The Hang Seng China Enterprises Index added 0.11%, or 9.08 points, to 8,204.31.

Tencent, the WeChat operator, surged 4.2% to HK$461.80, after the company proposed on Thursday to distribute a large chunk of its shareholding in JD.com valued at HK$127.7 billion (US$16.4 billion) as dividend in specie. The rally added about US$180 billion to its market capitalisation.

 

Shares of JD.com crashed 7% to HK$259.60, on concerns it may lose support from one of China's biggest tech companies, as Chinese authorities would like these big companies to reduce their market share in other sectors. Alibaba Group Holding fell 1.4% while Meituan retreated 1.7% on concerns Chinese regulators are continuing to monitor tech companies for breaches.

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