Hong Kong Market surges on China-US relations improvement

Hong Kong share market finished higher for third straight session on Tuesday, 15 November 2022, on tracking positive lead from Mainland A-share market, thanks to Beijing easing some of its COVID-19 rules and offer of more financial support to the troubled property market sparking hopes of an economic recovery.

Investors also cheered the easing of tensions in strained U.S.-China relations after a meeting of the heads of the world's top two economies on the sidelines of the G20 Summit. The US said it will resume cooperation with China on areas ranging from climate change to food security following the first in-person meeting between President Joe Biden and his counterpart Xi Jinping in Bali on Monday. The US will also send Secretary of State Anthony Blinken to visit China to further warm bilateral ties.

 

At closing bell, the benchmark Hang Seng Index spurted 723.41 points, or 4.1%, to 18,343.12. The Hang Seng China Enterprises Index surged 289.49 points, or 4.84%, to 6,269.29.

Among blue chips, Tencent Holdings and Alibaba Group both jumped 11% to HK$288 and HK$78.90, respectively. Macau casino operator Sands China advanced 6.1% to HK$19.88 and Ping An Insurance climbed 5.4% to HK$44.15 while HSBC added 2.4% to HK$44.70.

Shares of Hong Kong-listed Chinese technology companies rose as the meeting between U.S. President Joe Biden and Chinese President Xi Jinping's meeting ahead of the G-20 summit in Bali. Tencent rose 7.6%, Meituan gained 5.9%, and Alibaba rose 9%.

Property developers shares extended gains, as Beijing offer of more financial support to the troubled property market. Property management firm Country Garden Services surged 18% to HK$19.74, and China Vanke added 2.5% to HK$14.18. Longfor Group gained 1.7% to HK$21.55 while China Overseas Land and Investment rose 1.3% to HK$20.30.

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