The general view photo taken on Aug 22, 2023 shows the Hong Kong Stock Exchange in Central, Hong Kong. (EDMOND TANG / CHINA DAILY)
Hong Kong stocks rallied on Monday morning on the heels of the Chinese mainland halving stamp duty on stock transactions to reinvigorate its flagging market.
The benchmark Hang Seng Index, which is made up of mostly Chinese mainland companies, surged 562.70 points, or 3.13 percent, in the opening before narrowing the increase to 304.53 points, or 1.7 percent, to end at 18,260.91 as of noon trading.
The Hang Seng eventually surrendered its early gains to 0.97 percent, closing at 18,130.74 on Monday.
The performance was in line with a broader trend in the mainland market. The Shanghai Composite Index pared most of its gains to 1.13 percent at 3,098.64, while the Shenzhen Component Index surrendered its advance to 1.01 percent at 10,233.15.
As the latest stimulus measure intended to jumpstart investors’ confidence, the mainland’s stamp duty slash marks its first such reduction since the 2008 global financial crisis, and provides a much-needed shot in the arm to the country’s embattled capital market.
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As the latest stimulus measure intended to jumpstart investors’ confidence, the mainland’s stamp duty slash marks its first such reduction since the 2008 global financial crisis, and provides a much-needed shot in the arm to the country’s embattled capital market.
The CSI 300 index — a gauge of the largest Shanghai- and Shenzhen-listed stocks —dropped to a nine-month low as of last Friday as the post-pandemic recovery wobbled, coupled with deepening real estate woes.
In Hong Kong, the Hang Seng Index has fallen nearly 10 percent since the beginning of 2023. That compared with MSCI’s global stock index, which is up 11 percent so far this year.
Measures targeting the local market are possibly in the offing as Chief Executive John Lee Ka-chiu announced on Sunday that a task force aimed at improving liquidity in stock trading will be set up very soon.
“I think one of the (factors) of the strong competitiveness (of Hong Kong) is our position as an international financial center,” Lee told a media session after attending his second district forum ahead of the second Policy Address in October.
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“I have heard a lot of opinions about the importance of ensuring the liquidity of the stock market,” he said. “That is why the government has decided to set up this task force, to be led by the financial secretary. He will announce details (of the task force) very quickly.”
