HK stocks recover to pre-national security law sell-off levels, as investors set aside protest concerns, focus on signs of global economic recovery

04-Jun-2020 Intellasia | South China Morning Post | 6:02 AM Print This Post

The Hong Kong market rose to an intraday high of 24,328, rising above 24,280 points, its close on May 21, in a recovery to pre-national security law sell-off levels on Wednesday morning.

Stocks in the city and mainland China followed in the footsteps of the S&P 500, which closed at its highest level since early March in the US overnight, while European stocks also rallied, as economic reopenings globally accelerated amid favourable signs from early economic data.

Investors continued to set aside concerns about possible protests in Hong Kong against Beijing’s national security law. The social unrest in the United States could pose a risk to market sentiment, although investors were taking them as a side note to a global economic recovery.

“After all, if stock markets can survive the most profound economic calamity since the Great Depression, I am sure they can overcome the current level of civil unrest,” said Stephen Innes, chief global markets strategist at AxiCorp.

On the mainland, the Shanghai Composite Index gained 0.31 per cent to 2,930.39, boosted possibly by stronger-than-expected PMI data, which show that its economy is expanding.

Gains in Hong Kong were led by electronics stocks Alltronics rose 21.6 per cent. Index heavyweight Tencent was also up, having risen 1.3 per cent.

In China, Zhejiang China Commodities City Group surged by the daily limit of 10 per cent. Moreover, investors’ concerns about US-China tensions were alleviated to a certain extent by state-owned Global Times, which reported on Tuesday that Beijing was still buying American soybeans.


Category: Hong Kong

Print This Post