Hong Kong stocks soar 4.21% on China-US trade hopes

Hong Kong stocks soar 4.21% on China-US trade hopes

Hong Kong: Hong Kong and mainland Chinese shares soared Friday on hopes for a resolution to the China-US trade row after Donald Trump’s upbeat tweet about talks with Xi Jinping and a report he had asked for a draft deal to be drawn up.

The Hang Seng Index climbed 4.21 percent, or 1,070.35 points, to 26,486.35. The market piled on more than seven percent over the past week.

The benchmark Shanghai Composite Index surged 2.70 percent, or 70.24 points, to 2,676.48, racking up 3.0 percent during the week.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, climbed 3.43 percent, or 44.78 points, to 1,351.09. It added 4.7 percent since last Friday’s close.

Traders kicked the day off with a fizz after Trump tweeted the discussions were “moving along nicely” and meetings were “being scheduled” at the G20 summit in Buenos Aires at the end of the month.

The remarks were a rare sign of hope in the months-long stand-off between the world’s top two economies that has seen them hit each other with painful tariffs on hundreds of billions of dollars worth of goods.

Bloomberg News then said the president had asked officials to put together an outline deal to call a ceasefire in the row. That lit a fire under the already bustling Asian markets.

The advances rounded off a much-needed positive week, after October’s bloodbath, which wiped billions of valuations around the world.

There were huge gains across the board in Hong Kong, with equities that have been beaten in recent weeks benefitting from the new-found confidence.

Market heavyweight Tencent jumped 9.29 percent to HK$303.60, casino operator Wynn Macau jumped 13.24 percent to HK$19.16 and mainland telecoms equipment maker ZTE piled on 12.20 percent to HK$13.98.

Insurance titan AIA gained 4.81 percent to HK$64.25 and Cathay Pacific climbed 3.97 percent to HK$10.48 while HSBC was 2.08 percent higher at HK$66.40.

Property firms were also enjoying a recovery, having been hit by rising Hong Kong interest rates that have fuelled fears of a retreat in the city’s red-hot real estate market.

Sun Hung Kai Properties rose 2.89 percent to HK$106.90, Country Garden added 3.93 percent to HK$9.52 and New World Development was 2.58 percent up at HK$10.34.

Chinese stocks ended the week with a four-day rally with Xi’s support for private enterprises also providing a lift.

In a meeting with business leaders Thursday, Xi said China will continue to encourage, support and guide the non-public sector, following concerns that his government was seeking to foster state-owned firms at the expense of private enterprise.

“The big boss’ meeting with leaders from private enterprises boosted investor confidence,” said Zhang Qi, an analyst with Haitong Securities.

Shares of companies whose leaders were present at the meeting with Xi gained on Friday.

Shanghai-listed software engineering services provider Neusoft rose by the 10 percent daily limit to close at 10.84 yuan while Shenzhen-listed automobile parts manufacturer Wanxiang Group rose 9.92 percent to 5.54 yuan.

Ping An Insurance climbed 4.74 percent to 67.35 yuan while CITIC Securities advanced 2.48 percent to 17.79 yuan and Everbright Securities closed 6.56 percent higher to 10.39 yuan.

People Also Viewed