Hong Kong stocks surge by most in 3 weeks as Chinese market regulators’ promise of support lifts sentiment

Stocks were also boosted by an overnight rally in US shares amid expectations that tech companies will deliver strong earnings results

Traders will be keeping close tabs on corporate results as seven companies on the Hang Seng Index including Ping An Insurance Group prepare to report

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The rebound in equities comes after China’s securities regulators unveiled measures to bolster the Hong Kong market. Photo: Reuters

Published: 10:33am, 23 Apr 2024Updated: 4:42pm, 23 Apr 2024

Hong Kong stocks climbed by the most in three weeks as investors ramped up their buying on expectations that a slew of supportive measures from the Chinese securities watchdog will aid sentiment.

The Hang Seng Index rose 1.9 per cent to 16,828.93 at the close on Tuesday, its steepest gain since April 2 to extend a 1.8 per cent gain a day earlier. The Hang Seng Tech Index surged 3.4 per cent and the Shanghai Composite Index retreated 0.7 per cent.

Pork processing giant WH Group jumped 5.8 per cent to HK$5.80 after announcing its operating profit increased 37 per cent in the first quarter. Sportswear maker Li Ning advanced 5.7 per cent to HK$18.50 after a business update showed growth in retail and e-commerce sales in the first quarter.

The rebound in equities comes after China’s securities regulators unveiled measures on Friday to bolster the Hong Kong market by adding more exchange-traded funds to the Stock Connect programme and supporting listings of Chinese companies in the city. That offset concerns about the outlook for growth following China’s mixed bag of first-quarter economic data.

The Hang Seng Index has dropped by 1.3 per cent this year after a record run of four straight annual declines.

“Under the policy support for the Hong Kong market, southbound capital will keep flowing into the Hong Kong market,” said Huang Kaihong, an analyst at Guotai Junan Securities in Hong Kong. “That will strengthen [mainland investors’] pricing power in the Hong Kong market and boost its stability and rationality.”