HK stocks surge, China extends gains on economic recovery hopes
Hong Kong stocks jumped on Wednesday, while China stocks extended gains, as investors remained upbeat about a post-COVID recovery.
** China’s yuan hovered at a four-month high against the dollar, on hopes for more policy support to boost the economy as well as rising seasonal demand. ** “Investor confidence is coming back,” said Linus Yip, chief strategist at First Shanghai Securities. “They’re bullish on China’s normalisation and recovery prospects; this sentiment has also benefited most sectors.”
** Shares in China’s property developers surged following forecast-beating December sales and market rumours that regulators were mulling more supportive policies to bolster the housing sector. ** The Hang Seng Mainland Properties Index climbed up to 6%, to its highest since Dec. 9.
** Chinese new-home sales rose more than 20% year-on-year over the three-day New Year holiday that started on Dec. 31, due to promotions, support policies taking effect and the gradual release of pent-up demand after high COVID cases, according to a private survey by the China Index Academy. ** Hong Kong-listed tech giants tracked overnight U.S.-listed Chinese ADR gains, rising 3.4%. Alibaba Group jumped as much as 8%, while Tencent rose 3.2%.
** In mainland China, real estate, education and financial stocks led the gains, up 5.8%, 2.9%, and 1.8%, respectively, while the photovoltaic sector lost 2%.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)