Hong Kong stocks rally after stamp-duty rout, taking investors on wildest market rides since August
- Hong Kong tracked gains in regional markets after the Fed played down inflation concerns
- Losses at bourse operator HKEX deepened as analysts raised concerns on outlook for trading volumes
The large swings in prices sent the local benchmark index’s 30-day realised volatility to the highest level since August 10, according to Bloomberg data, a time when the city was still grappling with the fallout from the new national security law.
“The increase in the stamp duty mainly affects high-frequency trading, which accounts for about 20 per cent of Hong Kong’s market,” said Gao Zheng, a Shanghai-based fund manager at HFT Investment Management. “It’s a short-term headwind and we are still positive on the Hong Kong market in the long run.”
Old-economy stocks led the recovery on Thursday. Developer China Resources Land, China Overseas Land and Country Garden jumped more than 7 per cent as Beijing plans to implement a centralised programme of land sales, which analysts said will improve supply and lower acquisition costs.