HONG KONG: Hong Kong stocks rose more than three percent Thursday afternoon, wiping out the previous day’s losses, on hopes for China’s reopening and reports that the city was considering easing more Covid restrictions.
The Hang Seng Index rose 3.38 percent, or 635.41 points, to 19,450.23.
Various outlets said authorities were looking at easing testing requirements for travellers, among other things, raising hopes for a boost to the tourism industry.
The news came as the HSI was already rallying on China’s decision to roll back some of its strict Covid measures that have strangled the economy, though the index lost 3.22 percent Wednesday on concerns that the reopening could spark a surge in infections.
“As China relaxes policies, it gives room for Hong Kong to relax as well, as one of the first major border reopenings will be between the mainland and Hong Kong,” said Marvin Chen, at Bloomberg Intelligence.
“This will be a boost for the local Hong Kong economy which has struggled in the absence of mainland arrivals.”
Macau casinos – which rely heavily on cashed-up visitors from China – led the rally, with Wynn Macau soaring more than 20 percent, MGM China up close to 13 percent and Sands China 10 percent higher.
Hong Kong stocks end more than 3% lower
Tech firms and property firms were also enjoying strong buying interest.
However, Shanghai ended down 0.07 percent, or 2.27 points, to 3,197.35, while the Shenzhen Composite Index on China’s second exchange dipped 0.32 percent, or 6.66 points, to 2,064.38.
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