Hong Kong stocks jump to 7-week high on signs of thawing China-US ties while Beijing moves to stimulate economy

Name: ‘How to work it out’: Biden’s agenda for talks with Xi Jinping at G20 summit in Bali
Uploaded: 2022-11-15T02:39:19.000Z
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Description: ‘How to work it out’: Biden’s agenda for talks with Xi Jinping at G20 summit in Bali

Signs of thawing relations between the US and China are giving fresh hopes to investors while Beijing unveils more measures to revive economy

Gains limited by official reports showing China’s key economic data trailed market consensus in October

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Pedestrians walk past a stock ticker displaying the Hang Seng Index in Hong Kong on October 11, 2022. Photo: EPA-EFE

Zhang Shidongin Shanghai

Published: 10:39am, 15 Nov 2022Updated: 4:35pm, 15 Nov 2022

Hong Kong stocks rose for a third day, lifting the benchmark index to near a seven-week high and technically entering a bull market amid signs of thawing in China-US relations and growing optimism Beijing will roll out more measures to revive the economy.

The Hang Seng Index climbed 4.1 per cent to 18,343.12 at the close, its highest level since September 21. The Tech Index surged 7.3 per cent, and the Shanghai Composite Index added 1.6 per cent.

Tencent Holdings jumped 11 per cent to HK$288 and Alibaba Group surged by the same percentage to HK$78.90 before both companies announce their third-quarter results later this week. Macau casino operator Sands China advanced 6.1 per cent to HK$19.88 and Ping An Insurance climbed 5.4 per cent to HK$44.15 while HSBC added 2.4 per cent to HK$44.70.

“The easing of the tensions between China and the US has alleviated concerns among overseas investors, which will help to repair stock valuations,” said Cheng Yu, a fund manager at HSBC Jintrust Fund Management in Shanghai. “We are seeing a turnaround in corporate earnings” after a slew of policy-easing measures, he added.

The US said it will resume cooperation with China on areas ranging from climate change to food security following the first in-person meeting between President Joe Biden and his counterpart Xi Jinping in Bali on Monday. The US will also send Secretary of State Anthony Blinken to visit China to further warm bilateral ties.

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‘How to work it out’: Biden’s agenda for talks with Xi Jinping at G20 summit in Bali

Separately, China’s banking regulator said on Monday the nation’s developers will be allowed to use some of their presale funds in escrow accounts to keep their operations afloat, adding to measures to tackle a liquidity crunch that has been plaguing the industry over the past two years.