Alibaba, JD.com pace market rebound as Hong Kong pledges ‘maximum room’ to reopen borders, roll back Covid-19 curbs
- Market sentiment improved as the city is said to be preparing to end quarantine requirements while a top health official downgraded virus threat
- Chinese lenders maintained their key lending rates at this month’s setting to support businesses while China pledges to speed up infrastructure spending
The Hang Seng Index jumped 1.2 per cent to 18,781.42 at at the close of Tuesday trading, the biggest gain in the six days, from the lowest point since mid-March. The Tech Index added 2 per cent while the Shanghai Composite Index rose 0.2 per cent.
Alibaba Group jumped 3 per cent to HK$86.20 and Tencent Holdings advanced 1.5 per cent to HK$293.40. Chinese EV makers also benefited from improved sentiment as Xpeng surged over 8.9 per cent to HK$62.10 and Nio gained 4.6 per cent to HK$162.50. Sands China and Galaxy Entertainment led winners among Macau casino operators, adding 7.7 per cent and 4.3 per cent each.
“It seems like the officials have been considering dropping the quarantine rules, which will be a huge boost to local economy, even the world,” said Dickie Wong, executive director of research at Kingston Securities. “The market still need to wait and see how it will be carried out.”
The pledge bolstered sentiment. Mainland media reports said China will step up infrastructure spending, while Chinese commercial banks voted to keep their key lending rates unchanged to aid businesses. The one- and five-year loan prime rates stayed at 3.65 per cent and 4.30 per cent.