A woman walks past a sign showing the closing numbers of the Hang Seng Index in Hong Kong on June 2, 2023. (PHOTO / AFP)
Hong Kong stocks surged on Tuesday as positive signals from the Politburo meeting on Monday promised greater efforts to expand domestic demand, optimize real estate policies and revitalize capital markets, cheered investors.
The Hang Seng Index jumped by 4.1 percent to close at 19,434 points, hitting a one-month high, while the Tech Index surged by 6 percent. The turnover of the main board reached HK$142.1 billion ($18.2 billion).
Country Garden, a global top 500 enterprise with real estate development as its main business, surged over 18 percent to HK$1.49, and developer Longfor saw a spike of more than 25 percent to HK$18.56
Shenzhen and Shanghai stocks closed with an uptick of more than 2 percent. The Shanghai Composite Index ended its three consecutive trading days of decline with a 2.13 percent advance to close at 3,231.52 points, marking the largest single-day rally since the end of last November.
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Country Garden, a global top 500 enterprise with real estate development as its main business, surged over 18 percent to HK$1.49, and developer Longfor saw a spike of more than 25 percent to HK$18.56.
JD.com and Meituan, two of the mainland’s leading e-commerce firms, both experienced a strong upswing of around 8 percent, while Tencent and Alibaba each increased by over 6 percent.
“The substantial gains in the Hong Kong stock market can mainly be attributed to the positive signals released by the high-level meeting on Monday, which are greater than investors (had) forecast. They expect more favorable policies will be introduced in the coming future,” Conita Hung, an independent stock analyst, told China Daily.
She added that it may be challenging to break the 20,000-point mark given the influence of the US interest rate adjustment and fluctuations in the RMB exchange rate.
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Meng Lei, a Chinese stock strategy analyst at UBS Securities, holds a positive attitude towards mainland stock markets in the second half of 2023, predicting that A-shares may gain around 10 percent this year, as the gradual improvement in market sentiment in July is expected to bring more funds into the capital market in the following three months.
