Hong Kong stocks log longest winning streak in three weeks on China recovery optimism as property and casino stocks rally
- China Resources Land, Country Garden and other property companies gained as more cities signalled supportive housing policy changes
- Casino stocks recovered as traders deemed Monday’s sell-off in reaction to new Covid-19 infections as excessive
The Hang Seng Index climbed 1.9 per cent to 21,559.59 at the close of Tuesday trading. The Hang Seng Tech Index advanced 2.2 per cent, while the Shanghai Composite Index fell 0.3 per cent.
Developers including China Resources Land and Country Garden rallied for a second day after more mainland cities rolled out supportive policies to revive the housing market. Sands China and Galaxy Entertainment recouped Monday’s losses. Alibaba Group Holding led tech winners.
“The rebound in Hong Kong stocks can last for a while,” said Wang Yi, an analyst at Great Wall Securities. “The pro-growth measures are now working and more are on the way. The internet sector is pivotal to stabilising growth and employment, and there will be more positive policy signals on the sector.”
Country Garden gained 1.7 per cent to HK$4.70 and China Resources Land added 1.3 per cent to HK$34.60. Country Garden Services jumped 2.5 per cent to HK$33. Alibaba Group Holding, owner of the Post, added 1.3 per cent to HK$105.80, and Meituan rose 0.9 per cent to HK$201.20.
Elsewhere, CLP tumbled 7.1 per cent to HK$67.40 as the worst performer on the Hang Seng Index. The setback was due to a significant fair value loss from forward contracts of EnergyAustralia, Hong Kong’s sole power supplier said in an exchange filing late Monday.