Hong Kong stocks edge up as city eases more measures aimed at repairing economy

Name: SCMP Explains: What’s in a Covid-19 vaccine?
Uploaded: 2021-04-13T03:16:37.000Z
Duration: 6 min 18 s
Description: SCMP Explains: What’s in a Covid-19 vaccine?

Hang Seng Index rises 0.2 per cent, paring gains of as much as 1.5 per cent, after Beijing summons 34 big internet companies for a meeting

Hong Kong has made progress on a travel bubble with Singapore, while pretested visitors from China will be allowed to enter the city without the need to quarantine

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An electronic board displays stock figures outside the Hong Kong stock exchange in Central. Photo: EPA-EFE

Martin Choi

Published: 11:16am, 13 Apr 2021Updated: 5:57pm, 13 Apr 2021

Hong Kong stocks edged up, halting a two-day slide, after the city’s government eased social-distancing and cross-border travel measures for vaccinated residents, giving its beleaguered economy a shot in the arm.

Gains were, however, limited as a slump in Chinese technology stocks weighed on the benchmark. The Hang Seng Index rose 0.2 per cent to 28,497.25, paring gains of as much as 1.5 per cent. The gauge had lost nearly 2 per cent in the preceding two trading days amid a slump in technology shares.

Hong Kong residents who have been vaccinated for Covid-19 will be allowed to dine in bigger groups at restaurants and will be eligible for limited cross-border travel, the government said after the market closed on Monday.

The government has also made progress on a travel bubble with Singapore, while visitors from mainland China would be allowed to enter Hong Kong from mid-May without having to undergo quarantine, as long as they have been pretested for Covid-19.

Between the launch of the local vaccination programme in late February and Monday, about 597,400 people, or 8 per cent of the city’s 7.5 million residents, had received first doses, according to official statistics. About 280,500 people, or 3.7 per cent of the population, have received a second dose as well.

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SCMP Explains: What’s in a Covid-19 vaccine?

The eased social restrictions have given market sentiment a boost, and shares of shopping centre operators and local retailers will benefit directly, said Stanley Chan, director of research at Emperor Securities. For instance, on Tuesday Hong Kong shopping centre and hotel operator Wharf REIC led gains among blue chips in Hong Kong, rising 6.2 per cent to HK$45.65, its biggest single-day gain since February. New World Development, which also owns and operates shopping malls in the city, rose 1.7 per cent to HK$41.50, reaching its highest level since July.

“The trend is for the restrictions to gradually ease, as the pandemic situation is coming under control, along with the vaccination roll-out,” said Chan. He said he believed that there will be a chance for local stocks to continue to outperform the market, as capital flowed out of technology stocks.