Hong Kong, China markets gain most in about two months as trade progress, Shenzhen plan boost sentiment
- Shares of companies from Shenzhen, including Tencent Holdings, make decent gains
- Trump’s comment on progress in trade negotiations with China cheers investors
Hong Kong stocks posted their best daily performance in two months on Monday, while China markets jumped the most in seven weeks as investors cheered Beijing’s grand reform plan for Shenzhen and progress on the trade talks.
The Hang Seng Index surged 2.2 per cent, or 557.62 points, to finish at 26,291.84, recording its biggest daily advance since June 19.
The Shanghai Composite Index climbed 2.1 per cent to 2,883.1, posting its best daily performance since July 1. The Shenzhen Component Index jumped 3 per cent, and the ChiNext Index of start-ups was 3.5 per cent higher.
As many as 113 stocks listed in Shanghai and Shenzhen skyrocketed by the daily 10 per cent limit. Shenzhen’s home-grown companies led the advance, while brokerages also outperformed.
The gains came after China’s top leaders vowed to reform Shenzhen and develop the technology hub in the southern province of Guangdong into a global “benchmark” for competitiveness, innovation and influence by the middle of the century.
“Shenzhen’s breathtaking development over the past few decades was the direct result of Beijing’s special policy,” said Tang Sing-hing, chief executive of Royston Securities. “Now people are hopeful that the city will grow faster with more policy support, not just in the technology sector but also finance and medical services.”