Hong Kong stocks set for best month since January 2023 on property tonic, China market intervention

February 29, 2024

2 minutes read

Hong Kong stocks were headed for the best monthly gain since January 2023 as the city’s government took steps to revive the property market. investor sentiment improved after China’s state-run intervened to arrest a slump in confidence, while authorities curbed trading disruption by hedge funds.

The Hang Seng Index rose 0.4 per cent to 16,603.62 at 3.14pm local time, bringing the rally this month to 7.2 per cent, the most since a 10 per cent surge 13 months ago. The Tech Index advanced 0.8 per cent, while the Shanghai Composite Index jumped 1.9 per cent.

Sun Hung Kai Properties strengthened 2.1 per cent to HK$79.60 while its peer Hang Lung Properties added 1.1 per cent to HK$8.55. China’s biggest chip maker SMIC surged 7.7 per cent to HK$17.08, while HSBC gained 1.4 per cent to HK$60.60. Xinyi Solar surged 25 per cent to HK$4.77 after reporting a 9.6 per cent increase in full-year profit that exceeded analysts’ estimates.

Search engine operator Baidu’s 6.2 per cent slide to HK$100 capped the index’s gains, as did Budweiser’s 5.3 per cent slump to HK$12.86.

Local stocks rose to the highest level this year earlier this week, after builders rallied on property market speculation. Financial Secretary Paul Chan Mo-po removed decade-old curbs on home purchases and property financing limits during the Budget address on Wednesday.

February’s rally was also underpinned by China’s state-run funds, which have ploughed a net 410 billion yuan (US$57 billion) of cash into exchange-traded funds onshore this year to put a floor under the stock market, UBS said.

Overnight, Beijing pledged judicial protection and enforcement in the capital market and foster long-term development, the China Securities Regulatory Commission said in a statement. It would also tighten scrutiny quantitative trading strategy and control the size and leverage of the hedge fund business, a separate statement showed.

Hong Kong Exchanges and Clearing slipped 0.2 per cent to HK$244.40 as net income for the city’s bourse operator matched analysts’ estimates in 2023 despite a weak final-quarter performance. NetEase added 0.5 per cent to HK$177.60 as the online game operator prepares to also report on Thursday.

Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.1 per cent and South Korea’s Kospi retreated 0.4 per cent, while Australia’s S&P/ASX 200 advanced 0.5 per cent.

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February 29, 2024

2 minutes read