Hong Kong stocks rise again after China’s pledge to support market

Posted by Admin April 23, 2024 Bussiness

The rebound in equities comes after China’s securities regulators unveiled measures to bolster the Hong Kong market by adding more exchange-traded funds to the Stock Connect programme and supporting listings of Chinese companies in the city. That offset concerns about the outlook for growth following China’s mixed first-quarter economic data.

The Hang Seng Index has dropped more than 2 per cent this year after a record run of four straight annual declines.

Stocks were also boosted by an overnight rally in US shares amid expectations that tech companies will deliver strong earnings results.

Traders will be keeping close tabs on corporate results, with the earnings season in full swing. Seven companies on the Hang Seng Index including Ping An Insurance Group and Hong Kong Exchanges and Clearing, which operates the bourse, are due to release their report cards this week.

Two companies started trading in the city on Tuesday. Tianjin Construction Development Group tumbled 17 per cent to HK$2.07, and Sichuan Baicha Baidao Industrial, which makes bubble tea, slumped 21 per cent to HK$13.74.

Other major Asian markets rose. Japan’s Nikkei 225 climbed 0.2 per cent, while South Korea’s Kospi rose 0.1 per cent and Australia’s S&P/ASX 200 added 0.4 per cent.