SHAHGHAI: Chinese bluechip and Hong Kong stocks ended higher on Thursday, after China’s securities watchdog vowed to deepen market reforms and improve the quality of listed companies.
China’s bluechip CSI300 index rose 0.1% to close at 3,054.43, though the Shanghai Composite Index fell 0.5% to 3,054.43.
Hong Kong’s Hang Seng index added 2.7% to 19,679.22.
The China Securities Regulatory Commission (CSRC) said in a statement late on Wednesday that the economy will recover as strong stimulus policies take effect, boding well for China’s capital markets.
China is now grappling with a surge in infections after Beijing dropped its strict zero-COVID policy, but the CSRC said it’s fully confident toward the “bright future” of China’s economy.
The CSRC will push for an expansion of the mainland-Hong Kong Stock Connect scheme, implement offshore listing reforms, and deepen cooperation with Hong Kong’s capital markets.
Earlier in the week, Chinese and Hong Kong securities regulators said that they have agreed in principle to further expand the scope of eligible stocks under the mainland-Hong Kong Stock Connect.
The Hang Seng Tech Index jumped as much as 5.2%, as investors were encouraged by CSRC’s vows to support private firms and technology platform companies.
Alibaba Group Holding, Bilibili Inc and Xpeng Inc all rose sharply.
The CSRC said it will fast-track greenlighting of the first offshore listing by a “platform” company under China’s new approval system. Property shares also rose, after the CSRC reiterated its support to the struggling sector.
In China, tourism and Food & Beverage stocks rose.
“Consumer confidence should rebound after the initial wave passes, though that may take several months,” said Ernan Cui, analyst, Gavekal Dragonomics.
“Households have amassed substantial savings during the pandemic and may start to spend down those stockpiles.
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