Hong Kong stocks close with extended gains
HONG KONG: Hong Kong concluded Wednesday with another solid rise. On the back of expectations that China may relax its harsh Covid-zero restrictions, which contributed to recent protests throughout the country.
After increasing by more than 5% on Tuesday, the Hang Seng Index increased 2.16 percent, or 392.55 points, to 18,597.23.
On China’s second exchange, the Shenzhen Composite Index rose 0.12 percent, or 2.47 points, to 2,018.69, while the Shanghai Composite Index increased 0.5%, or 1.59 points, to 3,151.34.
Hong Kong Stocks end more than 5% higher
Tuesday saw a rise in Hong Kong equities as concerns about turmoil in China were replaced by optimism that the government will begin to relax some of its strict, costly zero-Covid regulations.
The Hang Seng Index increased by 906.74 points, or 5.24 percent, to 18,204.68. The Shenzhen Composite Index on China’s second market increased 2.14 percent, or 42.15 points, to 2,016.22, while the Shanghai Composite Index increased 2.31 percent, or 71.20 points, to 3,149.75.
The latest move to relieve pressure on the sector, which has seen many companies collapse and affect the health of the entire economy, saw property firms among the top performers after China announced it will lift a ban on companies obtaining money by selling stocks.
China was rock by protests over the weekend that demanded greater political freedoms and an end to the nation’s protracted zero-Covid strategy, which has placed millions of people under lockdown for months.
Security personnel was out in full force on Monday to avoid a repeat of the rallies, which were the most numerous since pro-democracy demonstrations were put down in 1989. Several arrests were made.
Hong Kong China stocks hit by protests
As the mainland was rock by protests against strict zero-Covid policies and requesting more political freedoms, Hong Kong and Chinese shares began the week with significant losses.
To reach 17,297.94, the Hang Seng Index dropped 1.57 percent or 275.64 points.
The Shenzhen Composite Index on China’s second exchange was down 0.51 percent, or 10.11 points, to 1,974.07. The Shanghai Composite Index dropped 0.75 percent, or 23.14 points, to 3,078.55.
Hong Kong stocks finish the week with the loss
Friday saw a negative close for Hong Kong equities as concerns that a Covid increase in China would trigger new lockdowns eclipsed rising hope that the Federal Reserve will soon scale back its rate hike campaign.
The Hang Seng Index dropped 0.49 percent, or 87.32 points, to 17,573.58.
Shanghai’s composite index rose 0.40 percent, or 12.38 points, to 3,101.69, while Shenzhen’s composite index, which trades on China’s second exchange, fell 0.70 percent, or 13.96 points, to 1,984.18.