Hong Kong stocks jump on property easing speculation, China recovery bets while Sunac deal lifts distressed developers

China’s recovery seen strengthening after a rebound in economic activity, with Goldman Sachs predicting more policy support this year

Speculation on market easing measures fuelled gains among Hong Kong property developers following recent ‘review’ signals from officials

2-MIN READ2-MIN

A screen showing various index figures inside the Hong Kong Connect Hall in May 2023. Photo: Bloomberg

Published: 10:28am, 6 Oct 2023Updated: 4:38pm, 6 Oct 2023

Hong Kong stocks climbed for a second day as China’s economic recovery gained momentum as manufacturing expanded, fanning optimism the government will enhance the rebound with more policy stimulus.

The Hang Seng Index gained 1.6 per cent to 17,485.98 on Friday, trimming the decline this week to about 1.8 per cent. All but five of the 80 index members advanced. The 30-member Tech Index rose 1.7 per cent to narrow the weekly loss to 2.5 per cent.

Tencent Holdings rose 1.3 per cent to HK$303.80, Baidu surged 1.8 per cent to HK$127.30 and AIA Group jumped 2.5 per cent to HK$67.60. Meituan rallied 2.6 per cent to HK$108.70 on speculation demand for its services ballooned during the golden week holiday.

Hang Lung Properties surged 2.5 per cent to HK$10.74 and Henderson Land advanced 1.5 per cent to HK$20.50, pacing winners among the city’s biggest developers, on speculation the government will ease measures as soon as this month to help revive home sales and prices.

About HK$60 billion (US$7.7 billion) worth of stocks changed hands per day this week on average, or half the average over the past 12 months, according to Bloomberg data. as financial markets in mainland China closed for the “golden week” national holiday.

Economic reports over the past two weeks showed the slowdown in China’s economic activity is ending. Exports have stabilised while headline inflation accelerated and an official manufacturing index rose above 50 in September.