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
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.
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.
The partial lifting of a two-week lockdown of Chengdu, the capital city of Sichuan province, also aided sentiment. Residents in seven districts will be allowed to return to normal life starting at noon on Thursday, with public transport services also resuming. Six other districts will continue in lockdown, with a new round of mass testing, according to the municipal government.
Hong Kong and Chinese “stocks will be underpinned by China’s accommodative monetary policy, which is completely divergent from the US”, said Shen Chao, a strategist at HSBC Jintrust Fund Management in Shanghai. “The pullback was more caused by swings in sentiment.”
Traders are waiting for the release of China’s key August economic data on industrial production, fixed-asset investments and retail sales, due on Friday. Some leading economic indicators point to weakening momentum, with two separate reports showing that the nation’s manufacturing contracted last month.
Smart logistics service provider Kengic Intelligent Technology dropped 3.2 per cent to 21.18 yuan on the first day of trading in Shanghai.
Australia’s benchmark and Japan’s Nikkei 225 both gained 0.2 per cent on Thursday in Asia-Pacific, while South Korea’s Kospi slipped 0.4 per cent.