HONG KONG: Hong Kong stocks reached a one-month high on Monday, led by Hong Kong-US dual listed companies, after a weekend statement from China’s securities watchdog allayed investors fears’ that such firms would be forced to delist from the United States.
The Hang Seng Index closed 2.1% higher at 22,502.31 points, its highest close since March 1. The Hong Kong China Enterprises Index gained 3.1% to 7,770.98.
Mainland Chinese markets were closed for a holiday. Both Hong Kong and mainland markets will also be closed on Tuesday.
The China Securities Regulatory Commission, on Saturday, proposed revising confidentiality rules involving offshore listings, removing a legal hurdle to Sino-US cooperation on audit oversight. Instead, the onus for protecting state secrets will be put on Chinese companies.
Baidu finished the day 7.77% higher, Yum China gained 5.33% and Weibo added 3.4%. All three had been named by the US Securities and Exchange Commission as possibly facing delisting from the United States under rules requiring the US accounting regulator to have access to audit working papers of US listed companies.
“Investors’ concerns about the delisting of Chinese dual listing stocks in the United States have been reduced, which is the most important factor for the performance of the stock market today,” said Kenny Ng, securities strategist at China Everbright Securities International.
The Hang Seng Tech Index jumped 5.43%.
“Mainland property stocks continued to perform well also, which is related to the recent measures introduced by some local governments in the mainland.
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