Hong Kong and China stocks rose on Wednesday, as investors shrugged off concerns over surging Covid-19 infections in Beijing and focused on optimism in the US markets. The Hang Seng Index swung between gains and losses before ending the day 0.6 per cent higher at 24,481.41, extending gains for a second day. The Shanghai Composite Index added 0.1 per cent to 2,935.87. Investors were buoyed by the strength in the Dow Jones futures, which rose 0.6 per cent after opening in the afternoon. Wall Street remained hopeful over the US economic outlook after data pointed to a rebound in consumer spending in May. “The Hong Kong market has become extremely sensitive to the Dow Jones futures since March, as investors are searching for short-term indicators to base their decisions upon before the economy recovers to its normal level,” said Castor Pang Wai-sun, head of research at Hong Kong-based brokerage Core Pacific-Yamaichi. While worries over a new outbreak of coronavirus in China’s capital led to a sell-off on Monday, investors were still motivated to rush back into the market at a low point, he said. Chinese authorities on Wednesday ordered residents to not leave Beijing unless they have tested negative for the virus in the past seven days, after the city reported 31 new locally transmitted infections. Zhejiang city in eastern China also reported a new case on Wednesday – a 36-year-old man who returned to his hometown after working at Xinfadi, a major wholesale food market in Beijing where many people were infected. Index heavyweight Tencent Holdings, which operates China’s most popular social media platform, gained 0.4 per cent to HK$450.6, its highest level since March 2018. The company is aiming to become the biggest shareholder in its US-listed video streaming rival iQiyi, Reuters reported, citing anonymous sources. Pharmaceuticals surged broadly. Chinese drug marker Sinopharm Group soared 9.2 per cent to HK$20.75, after a Covid-19 vaccine developed by its subsidiary showed no adverse effects in a clinical trial. Shijiazhuang Yiling Pharmaceutical advanced by the daily maximum of 10 per cent to 34.58 yuan, after its traditional Chinese medicine product Lianhua Qingwen capsule was included in a treatment guideline published by a local regulator. Restaurant chains in Hong Kong also gained, following the government’s decision to relax its social distancing rules to allow public gatherings of up to 50. Customer limits for restaurants were lifted too. Cafe de Coral, a local fast-food chain operator, surged 6.7 per cent to HK$16. Its rival Fairwood Holdings rose 3 per cent to HK$17.2. Chinese firms abandon US market at fastest pace since 2015 China Literature, operator of the country’s largest online reading platform, jumped 8 per cent to HK$48.7 after JPMorgan analysts raised their rating for the stock to neutral from underweight. Wheelock and Co, Hong Kong’s fourth-largest property developer by market value, inched up by 0.1 per cent to HK$62. Shares of the company will be traded for the last time on Thursday, after shareholders of Wheelock approved a plan to privatise the company on Tuesday. Airline and airport stocks declined, after hundreds of flights to and from Beijing were cancelled . Beijing Capital International Airport, operator of the world’s second-busiest airport, fell 2.3 per cent to HK$5.08 in Hong Kong. China Southern Airlines dipped 1.1 per cent to HK$3.64.