Hong Kong stocks extend winning run as bulls build optimism on Xi-Biden summit, policy easing bets

Hang Seng has risen by almost 4 per cent over six days on stimulus bets and going into the Xi-Biden virtual summit on Tuesday

Elsewhere, speculation on policy easing bets grew as several mainland cities loosened property market curbs to revive sluggish home sales

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Stock bulls are driving the Hang Seng Index to its longest winning streak since mid-February as Xi and Biden exchanged views to thaw relations. Photo: Reuters

Published: 10:50am, 16 Nov 2021Updated: 4:39pm, 16 Nov 2021

Hong Kong stocks rose for a sixth day, the longest winning run in nine months, as China and US leaders explored steps to ease tensions between the world’s two largest economies.

The Hang Seng Index advanced 1.3 per cent to 25,713.78 at the close of Tuesday trading. The six-day gain totalling 3.8 per cent is the longest since February 17. The Hang Seng Tech Index surged 1.7 per cent, with Alibaba Group Holding, Tencent Holdings and Meituan adding 2.2 to 2.7 per cent. China’s Shanghai Composite Index retreated 0.3 per cent.

Macau casino operators Sands China and Galaxy Entertainment were the biggest index gainers in the city, each rising by more than 5 per cent as the city’s chief executive Ho Iat Seng delivered the annual policy address on Tuesday in a boost to the industry. Xinyi Glass was the worst performer with a 5.2 per cent loss.

President Xi Jinping and Joe Biden held a virtual summit over more than three hours on Tuesday. The Chinese leader called on both sides to “find the right way to get along” and urged his counterpart to return US policy on China to a rational track.

Signs of any improvement in the bilateral ties could remove a geopolitical overhang in the market since the US-China trade war began in 2018 under the Trump administration.