SHANGHAI: Hong Kong stocks rebounded as the market reopened on Wednesday, led by a rally in gaming firms after regulators vowed to make improvements to proposed rules that had sent stocks in gaming companies plunging.
Mainland China shares edged up, with semiconductor firms leading the gains.
Hong Kong’s Hang Seng Index rose 1.7%, and the Hang Seng China Enterprises Index climbed 2.1% at market close.
The blue-chip CSI 300 Index ended 0.4% higher, and the Shanghai Composite Index added 0.5%.
The broad Asian stocks also rose, tracking a Wall Street rally as investors latched on to the year-end optimism driven by expectations the Federal Reserve could begin cutting rates as early as next March.
Tech giants listed in Hong Kong climbed 2.6%, with Tencent Holdings up 4% and NetEase jumping 11.9%, following sharp declines in the two gaming giants in the previous session, as China’s new rules to curb spending on video games dented sentiment.
To soothe sentiment, China’s video game regulator - the National Press and Publication Administration - has struck a more conciliatory tone, saying it would improve the rules by “earnestly studying” public views. It then approved new licenses for 105 domestic online games for December - more than the monthly average.
However, China’s Anime Comic Game Index, covering smaller game makers listed in mainland markets, closed down 0.7%, following a 15% slide over the previous three sessions.
China’s November industrial profits posted double-digit gains as overall manufacturing improved, although soft demand continued to constrain business growth expectations.
Foreign investors bought a net 5.6 billion yuan ($783.97 million) of Chinese stocks via the Stock Connect, booking the biggest daily inflow since December.In China markets, shares in semiconductors and energy companies jumped 1.5% each, while securities brokers advanced 0.7 percent.
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