Hong Kong Market surges on China reopening hopes

30 May 2022 , 04:10 PM

Hong Kong share market finished session at six-week high on Monday, 30 May 2022, as appetite for risk assets underpinned on tracking positive lead from Wall Street last Friday on easing concerns over excessive U.S. inflation. Meanwhile positive trade on the Mainland A-share market on Chinas easing of COVID-19 mobility restrictions also boosted sentiment. Hong Kong stocks also received a boost after an agreement to add exchange-traded funds to the Stock Connect scheme, a cross-border trading link between the city and bourses in Shanghai and Shenzhen. At closing bell, the benchmark Hang Seng Index increased by 2.06%, or 426.57 points, to 20,123.93, the highest level since April 14. The Hang Seng China Enterprises Index grew 2.44%, or 172.75 points, to 7,255.13. US stocks enjoyed a broad-based rally on Friday, after data showed that U.S. consumer spending rose in April and the uptick in inflation slowed, two signs the worlds largest economy could be on track to grow this quarter. The Beijing and Shanghai reopening narrative has boosted risk sentiment. Shanghai authorities is aiming to exit a two-month COVID lockdown conditions and will allow businesses to resume work from Wednesday, 1 June 2022, while Beijing reopened some parts of public transport on Sunday as well as some malls as infections stabilized. Strict movement restrictions in key Chinese cities have severely hit the nations economy. Risk appetite was also supported by stimulus measures announced by Shanghai authorities to support the economy. Shanghai, the countrys commercial capital, announced tax breaks and subsidies to help businesses recover from a two-month shutdown. Among blue chips, Alibaba Group Holding soared 4.3% to HK$94.40. Meituan rallied 6.8% to HK$175.10. Li Ning and Haidilao rallied 9% to 11%. Powered by Capital Market – Live News