Hong Kong stocks bounce back from six-month low as property developers surge and China eases Chengdu lockdown

Property developers led the gain on the benchmark as Guangzhou and Suzhou relaxed curbs on the real-estate market

Traders are waiting for reports on China’s industrial production, fixed-asset investments and retail sales, due on Friday

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People pass a stock ticker displaying the Hang Seng Index in Hong Kong on August 29, 2022. The index gained 0.4 per cent on Thursday. Photo: EPA-EFE

Published: 10:29am, 15 Sep 2022Updated: 4:38pm, 15 Sep 2022

Hong Kong stocks rebounded from a six-month low as a global sell-off receded and China eased Covid-19 restrictions on the megacity of Chengdu. Property stocks jumped as two Chinese cities relaxed curbs on the real-estate market.

The Hang Seng Index gained 0.4 per cent to 18,930.38 at the close on Thursday. The Hang Seng Tech Index rose 0.3 per cent, while the Shanghai Composite Index slid 1.2 per cent.

Chinese property developers led the gain on the benchmark after Guangzhou and Suzhou joined other Chinese cities in easing restrictions on the real-estate market. Guangzhou started to allow developers to raise new-home prices by a wider margin, while Suzhou scrapped restrictions on home purchases by non-local residents in six districts.

Country Garden jumped 8.7 per cent to HK$2.62, Longfor Group surged 4.7 per cent to HK$28.95 and China Resources Land advanced 4.9 per cent to HK$34.45. Wuxi Biologics jumped 6.6 per cent to HK$54.15, rebounding for a second day. Alibaba Group Holding added 1.2 per cent to HK$88.10.

Local stocks reflected strength on US and regional markets, where sell-offs on Wednesday, sparked by hotter-than-estimated inflation, largely eased after an official report showed that American producer prices fell for a second straight month in August.

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