SHANGHAI: Hong Kong stocks rose on Tuesday, as investor fears of deeper banking stress were eased after failed Silicon Valley Bank secured a buyer. Chinese shares, however, were dragged lower by information technology companies.
Hong Kong’s benchmark Hang Seng Index climbed 1.1%, and the China Enterprises Index added 1.2%.
China’s blue-chip CSI300 Index closed down 0.3%, while the Shanghai Composite Index lost 0.2%.
Regional US lender First Citizens BancShares scooped up the assets of failed peer Silicon Valley Bank on Monday, allaying investor fears of deeper banking sector stress and prompting a rally in bank shares, while global stocks also rose.
Additionally, the Federal Reserve’s top regulatory official plans to tell Congress that regulators are committed to ensuring all US bank deposits are safe.
Financial shares traded in Hong Kong rose 1.4%, with HSBC Holdings and AIA Group up 1.9% and 1.6%, respectively.
Hong Kong tech stocks climbed 0.9%, with Tencent up 4.2%.
China’s cyberspace regulator vowed on Tuesday to clamp down on malicious online comments that damage the reputation of businesses and entrepreneurs, amid an official drive to shore up the private sector and spur economic growth.
China’s Premier Li Qiang told foreign business executives that the country will open up further.
“Chinese leaders are attempting to shore up foreign investors’ confidence in China after the years of the closed-door policy during the pandemic and the trend of de-globalization,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank.
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