Hong Kong Market extends rally

9 Dec 2022 , 05:05 PM

Hong Kong share market finished higher for second session in row on Friday, 09 December 2022, as investors took heart from overnight rally on Wall Street and on expectations Chinas economy would strengthen as authorities unwind COVID-19 curbs. At closing bell, the benchmark Hang Seng Index advanced 450.64 points, or 2.32%, to 19,900.87. The Hang Seng China Enterprises Index was up 167.44 points, or 2.51%, to 6,834.21. For the week, Hang Seng grew by 6.6%. Investors are growing optimistic about Chinas recovery, as Chinas Premier Li Keqiang said on Thursday that the countrys shift in COVID-19 policy would allow the economy to pick up pace, a day after a top-level party meeting pledged to focus on stabilising growth while optimising pandemic measures. The government also plans to boost vaccination, especially among the elderly, measures investors see as conducive to an eventual reopening of the economy. China reported weak factory-gate and consumer prices for November on Thursday, indicating the surge in COVID cases and downbeat consumer sentiment were still weighing on the worlds second-largest economy. The producer price index in November fell 1.3% year-on-year, contracting for a second month. The consumer price index was up 1.6%, weaker than 2.1% in October. Still, traders appeared to shrug off the data, as they remain optimistic that the worst of Chinas economic woes from COVID-19 is over. Among blue chips, Tencent Holdings gained 2.6% to HK$325.60, Alibaba Group gained 2.7% to HK$91.85, and Meituan jumped 5.7% to HK$188.50. Developer Country Garden surged 8.5% to HK$3.06, Sun Hung Kai rose 4.3% to HK$102.50 and New World Development gained 6.7% to HK$22.25. Chinas Tesla challengers Nio and Xpeng added 3.7 to 4%. Powered by Capital Market – Live News