Hong Kong stocks end higher on global stimulus, recovery hopes

06-Aug-2020 Intellasia | Reuters | 12:10 PM Print This Post

Hong Kong shares ended higher on Wednesday, tracking gains in Asia and mainland China, on hopes for more economic stimulus from global policymakers and a gradual recovery in the Chinese economy.

** The Hang Seng index closed up 0.6% at 25,102.54. The Hang Seng China Enterprises index rose 0.5%. ** The sub-index of the Hang Seng tracking energy shares rose 1.8%, the TECH index rose 1.5%, the financial sector added 0.1% and the property sector rose 0.4%.

** The Hong Kong market tracked gains in regional equities as investors turned their focus to stepped-up monetary and fiscal support globally, with sentiment also supported by firmer Chinese stocks, which rose for a fourth day.

** Growth in China’s services sector – accounting for 60% of the economy – slowed in July from a decade high the previous month but remained in expansion territory. A central bank adviser projected 2% growth for 2020.

** The trend for the Hang Seng Index is largely positive with global markets on the up, but risks from Sino-U.S. tensions and corporate earnings will keep it around 25,000, CHIEF group’s analysts said in a note.

** Many companies listed with in the city are reporting earnings this month, with heavyweight ledner HSBC coming out with worse-than-expected numbers this week. ** About 1.48 billion Hang Seng index shares were traded, lower than the previous trading session’s 1.91 billion. ** At close, China’s A-shares were trading at a premium of 35.52% over Hong Kong-listed H-shares.



Category: Hong Kong

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