Hong Kong Market rebounds on bargain hunting

23 Feb 2022 , 06:35 PM

Hong Kong share market finished session higher on Wednesday, 23 February 2022, snapping a three-day losing streak, as bargain hunting resumed after sanctions by the Western nations against Moscow and amid a raft of relief measures offered by the citys government to counter the economic effects of a resurgent Covid-19 outbreak.

Hong Kongs government unveiled its budget on Wednesday, unleashing a raft of stimulus and relief measures to shore up the local economy as the city battens down hatches to weather a resurgent Covid-19 outbreak. Measures include an anti-pandemic fund totalling HK$64 billion, with another HK$20 billion supporting residents and businesses hammered by a worsening public health crisis.

At closing bell, the benchmark Hang Seng Index advanced 0.6%, or 140.28 points, to 23,660.28. The Hang Seng China Enterprises Index added 0.56%, or 46.53 points, to 8,317.22.

Western nations on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbor.

After Moscow deployed troops in separatist regions of eastern Ukraine, the United States, the European Union, Britain, Australia, Canada and Japan responded with plans to target banks and elites, while Germany froze a major gas pipeline project from Russia.

Investment bank China International Capital Corp (CICC) said in a note that the conflict has limited impact on Chinas giant economy, given its relatively small exposure to Russia in terms of trade. In the long term, Russia could increase yuan holdings due to western sanctions.

Leading the upside were Wuxi Biologics, up 4.9%, followed by smartphone-components maker Sunny Optical Technology, up 4.0%, and then e-commerce giant JD.com, up 3.6%. On the downside were toolmaker Techtronic, off 4.6%, and then Bank of China HK, off 3.1%.

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