Mainland Chinese stocks end Year of the Rat higher, as markets soar ahead of Lunar New Year break on economic recovery optimism

Hang Seng closes at 30,038.72, rising above the 30,000 level for the first time since January 25

Shanghai Composite reaches its highest level since August 20, 2015, on third straight day of gains

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Lunar New Year decorations go up at a restaurant in Beijing. Monetary data released on Tuesday shows a surge in new credit last month, suggesting conditions remained supportive of growth momentum beyond the holiday. Photo: Simon Song

Published: 10:52am, 10 Feb 2021Updated: 5:15pm, 10 Feb 2021

The Hong Kong and China markets soared on Wednesday ahead of the Lunar New Year holiday, on optimism about a global economic recovery.

The Hang Seng Index rose 1.9 per cent to 30,038.72, rising above the 30,000 level for the first time since January 25, for a fourth straight day of gains .

The Shanghai Composite added 1.4 per cent to 3,655.09, reaching its highest level since August 20, 2015, for a third day of gains on the last trading day of the Year of the Rat. Between January 23 last year and Wednesday, the Shanghai Composite Index has risen 22.8 per cent, the Shenzhen Composite Index has risen 40 per cent and the CSI300 Index, which tracks the top 300 stocks on both exchanges, climbed 45 per cent. The mainland bourses will pause for five trading days, from February 11 to 17, while Hong Kong’s markets will open for half the day on Thursday, and will shut on February 12 and 15.

“Investors are becoming more confident about a global economic recovery, as new coronavirus infections are gradually slowing down in parts of the world and the vaccine roll-out broadens,” said Stanley Chan, director of research at Emperor Securities. “Investors are hoping to push up stock market prices before the Lunar New Year holiday on the back of this wave of positive sentiment.”

Of the 52 constituent members of the benchmark Hang Seng Index, 44 gained on Wednesday.

Chinese delivery giant Meituan powered the gains, surging 5.2 per cent to HK$430.40. Tencent Holdings rose 2.8 per cent to HK$761, while Alibaba Group Holding, the owner of this newspaper, climbed 2.6 per cent to HK$262.

Hong Kong Exchanges and Clearing (HKEX) rose 3.8 per cent to HK$534. The bourse operator announced on Tuesday that it had chosen JPMorgan Chase & Co banker Nicolas Aguzin to replace Charles Li Xiaojia as its chief executive.