Update | Hong Kong stocks highest in over two years, boosted by property developers
Country Garden surged 7.2 per cent, Sun Hung Kai Properties gained 2 per cent, and Evergrande rose 3.7 per cent at close on Wednesday
Hong Kong stocks reached their highest level in almost two and a half years at the close on Wednesday, as property developers, banks and insurers led the gains.
The benchmark Hang Seng Index advanced 0.7 per cent, or 206 points, to finish the Wednesday session at 28,379.2, the highest since April 29, 2015. The increase follows a surge of 2.3 per cent on Tuesday, its best one-day percentage gain since May 2016.
The Hang Seng China Enterprise Index was up 0.8 per cent, or 91.8 points, at 11,397.2.
“Market sentiment and fundamentals are being lifted by the good performance of the global economy, and Hong Kong’s economy is growing at a faster pace too,” said Stanley Chan, director of research at Emperor Securities.
Investors are also speculating about the highlights of the annual policy address by Chief Executive Carrie Lam Cheng Yuet-ngor to be delivered next Wednesday, Chan said. In her first policy speech since taking office in July, Lam will present her major government objectives and plans.
“The address might include an increase in government spending,” said Chan.