Hong Kong stocks rose on more Chinese measures to support the market, and the shock of Evergrande's liquidation caps the rally

Stores Hong Kong stocks jumped after China's market regulator halted securities lending for restricted stocks listed on mainland stock exchanges to stabilize stock prices, in addition to a series of measures to stem market turmoil. China Evergrande sank after losing a lawsuit to stave off liquidation.

The Hang Seng Index rose 0.8 percent to 16,077.24 on Monday, after rising as much as 1.9 percent. The index rebounded 4.2 percent last week from its lowest level in 15 months. The Technology Index rose 0.5 percent, while the Shanghai Composite Index fell 0.9 percent.

Alibaba Group advanced 2.4 percent to HK$72.60, for e-commerce JD.com Baidu shares rose 2.2 percent to HK$93.35, and Baidu shares jumped 2.1 percent to HK$105.10. China Unicom shares rose 2.4 percent to 5.45 Hong Kong dollars, Sinopec shares gained 2.5 percent to 4.16 Hong Kong dollars, and PetroChina shares increased 1.4 percent to 5.79 Hong Kong dollars.

Longfor added 0.3 percent to HK$9.47, and China Resources Land jumped 2.9 percent to HK$24.90 after the city of Guangzhou in southern Guangdong province lifted restrictions on buying large homes.

“The market is still in a recovery phase driven by recovering sentiment,” Kevin Liu, a strategist at CICC, said in a report on Sunday. He added: “Reversing the real trend requires more targeted political incentives.”

The Hong Kong High Court has ordered the liquidation of Evergrande Group

However, Hong Kong's benchmark stock index has fallen about 4.2 percent so far this month, heading for its worst January since a 6.7 percent drop in the first month of 2020. A court ruling sending debt-laden Chinese developer Evergrande into liquidation has led to… Reducing stock gains.

China Evergrande shares fell 21 percent to HK$0.163. A court in Hong Kong ordered The developer then folded Failed to provide a satisfactory plan to repay creditors over the past 18 months. Its unit Evergrande New Energy Vehicle fell 18 percent to HK$0.229, while property management company Evergrande Property Services lost 2.5 percent to HK$0.39. All of them were suspended from trading shortly after the ruling.

US lawmaker moves to ban Chinese biotech companies from concluding military-related contracts

Elsewhere, WuXi Biologics erased gains to fall 5.7 per cent to HK$23.15, extending Friday's 17 per cent decline. a company He denied the accusations contained in the proposed US legislation That its CEO, Chen Zhiqing, has ties to the Chinese military. Shares of its sister company WuXi Apptec, also targeted in the bill, fell nearly 11 percent to HK$57.75.


China's GDP: Beijing's long to-do list to boost its economy in 2024

China's GDP: Beijing's long to-do list to boost its economy in 2024

Sentiment is likely to be cautious ahead of further potentially weak economic data this week. Chinese manufacturing is likely to remain in contraction territory for a fourth month in January, according to economists tracked by Bloomberg, ahead of an official report on January 31. Industrial profits fell by 2.3 percent in 2023, the second year of decline, a report said last week. show up.

The Federal Reserve is expected to keep its key interest rate unchanged at its first policy meeting of the year later this week, according to odds calculated from Federal Reserve funds futures compiled by CME Group.

Major major Asian markets were trading higher. South Korea's Kospi advanced 0.9 percent, Australia's S&P/ASX 200 rose 0.3 percent, while Japan's Nikkei 225 added 0.8 percent.

See also  Technology Stocks Rise, Revenue Falls Ahead of Nvidia Earnings: Stock Market News Today

Leave a Reply

Your email address will not be published. Required fields are marked *