Hong Kong’s stock indexes climb on China’s vow to further open financial sector as Mengniu Dairy cheers newly appointed chairman
- AIA Group, the largest insurer listed in Hong Kong, rises 4 per cent to an all-time high
- Apple suppliers advance after the smartphone maker reported better-than-expected first-quarter earnings
Hong Kong stock indexes advanced on the Chinese government’s pledge to open up the country’s financial services sector to foreign competition, while electronic component makers rose on Apple’s better-than-expected quarterly earnings.
The Hang Seng Index rebounded from early losses to close Thursday 0.8 per cent higher at a six-day high of 29,944.18, while the China Enterprises Index rose 0.1 per cent to 11,556.72, the third day of gains out of four. Turnover in Asia’s second-largest capital market shrank 3.3 per cent to HK$71.7 billion (US$9.1 billion), below the daily average of HK$110.6 billion in March.
Trading was halted in the stock markets of Shanghai and Shenzhen to mark Labour Day holidays. The Connect cross-border investment channels between Hong Kong and the two mainland bourses were also closed.
The shares of financial institutions led gains in Hong Kong, with the sector gaining 1.7 per cent, according to Bloomberg data, after China’s government announced on Wednesday that the US$44 trillion financial sector would be further opened to foreign banks and insurers to comply with any deal with the United States to end the year-long trade war between the countries.
The head of China’s banking and insurance regulator said on Wednesday it would push forward with 12 changes in the short term, including allowing overseas insurers to set up units in the country and removing caps on foreign and domestic single shareholders’ investments in local commercial banks.