Hong Kong stocks advance as Chinese developers rally on easing bets while Macau casinos slide amid virus outbreak
- Chinese Overseas Land and other developers advanced as Zhengzhou and Wenzhou unveiled measures to revive home sales
- The gambling hub in Macau recorded the first Covid-19 outbreak in eight months while authorities called for mass testing
The Hang Seng Index gained 0.4 per cent to 21,163.91 at the close, reversing an earlier slide of 1.2 per cent. The benchmark slipped 3.4 per cent last week to halt a two-week rally. The Hang Seng Tech Index added 0.1 per cent while the Shanghai Composite was little changed.
China Overseas Land and Investment surged 9 per cent to HK$23.70, while Country Garden rallied 7.2 per cent to HK$4.62 and China Resources Land jumped 8.4 per cent to HK$34.15. Cash-strapped builders including Yuzhou Group, KWG Property and Zhenro Properties each soared by 13 per cent.
Expectations for more supportive policies have risen after local governments in Zhengzhou and Wenzhou offered subsidies in the form of vouchers and lowered the down payments for home purchases, according to official reports.
“Government measures are supportive, but they can still do more on the property and consumption front,” said Stephen Innes, a managing partner at SPI Asset Management. “More supportive policies will be rolled out when the mainland has a full reopening, and the multiplier effect takes hold.”