HK stocks surge, China extends gains on economic recovery hopes

HONG KONG: Hong Kong stocks jumped on Wednesday, while China stocks extended gains, as investors remained upbeat about a post-COVID recovery.

** China’s blue-chip CSI 300 index rose 0.28%, while the Shanghai Composite Index gained 0.32%.

** The Hang Seng index added 2.3% and the Hang Seng China Enterprises Index advanced 2.46%.

** China’s yuan hovered at a four-month high against the dollar, on hopes for more policy support to boost the economy as well as rising seasonal demand.

** “Investor confidence is coming back,” said Linus Yip, chief strategist at First Shanghai Securities. “They’re bullish on China’s normalisation and recovery prospects; this sentiment has also benefited most sectors.”

** Shares in China’s property developers surged following forecast-beating December sales and market rumours that regulators were mulling more supportive policies to bolster the housing sector.

Hong Kong stocks start year on front foot

** The Hang Seng Mainland Properties Index climbed up to 6%, to its highest since Dec. 9.

** Chinese new-home sales rose more than 20% year-on-year over the three-day New Year holiday that started on Dec. 31, due to promotions, support policies taking effect and the gradual release of pent-up demand after high COVID cases, according to a private survey by the China Index Academy.

** Hong Kong-listed tech giants tracked overnight US-listed Chinese ADR gains, rising 3.4%. Alibaba Group jumped as much as 8%, while Tencent rose 3.2%.

** In mainland China, real estate, education and financial stocks led the gains, up 5.8%, 2.9%, and 1.8%, respectively, while the photovoltaic sector lost 2%.