Advertisement
Hong Kong stock market
BusinessMarkets

Hong Kong stocks surge to 7-week high on property market speculation as China pledges regulatory predictability amid market intervention

  • Calls for removal of property market curbs have grown louder in recent weeks as Hong Kong prepares its budget for next fiscal year
  • China’s ‘national team’ is seen stepping up market purchases, following a recent surge in net assets of top onshore exchange-traded funds

Reading Time:2 minutes
Why you can trust SCMP
2
Stock bulls go on the offensice as the Hang Seng Index reaches the highest level in seven weeks. Photo: Winson Wong
Jiaxing Li
Hong Kong stocks surged to a seven-week high as property developers advanced on speculation the city’s government will remove more curbs this month to stem an industry slump. China pledged to improve policy transparency while state-run funds have stepped up intervention.

The Hang Seng Index rallied 1.6 per cent to 16,503.10 on Wednesday to reach the highest level since January 5. The Tech Index soared 2.7 per cent, while the Shanghai Composite Index climbed 1 per cent.

Sun Hung Kai Properties advanced 3.7 per cent to HK$75.15, Henderson Land added 2.8 per cent to HK$21.90 while New World Development climbed 4.6 per cent to HK$9.79. The Hang Seng Property Index rose 3 per cent to a one-month high. Tech stocks also rallied, as Alibaba Group strengthened 1 per cent to HK$72.90 and Tencent rose 1.6 per cent to HK$288.80 while Meituan appreciated 4.9 per cent to HK$77.

The benchmark index pared a rally of as much as 3 per cent as HSBC slumped 3.8 per cent to HK$60.25. The UK lender reported a 56 per cent jump in net profit in 2023, as net interest margin slimmed in the final quarter and credit losses weighed on results.

The Hang Seng Index has risen 6.6 per cent this month, clawing its way up from a 14-month low in January as Beijing stepped up measures to repair investor confidence. The rebound in February has restored US$200 billion of value to the city’s stock market through February 20, according to Bloomberg data.

Financial secretary Paul Chan Mo-po will deliver the city’s budget on February 28 as traders bank on measures to jump-start the local economy. Some industry veterans have also called on Chan to dismantle market hurdles as asset values diminished. The government imposed curbs to cool a speculative frenzy in the 1990s.

Advertisement