Hong Kong stocks experienced a third consecutive session of gains on Friday as investors positioned themselves ahead of the imminent reopening of China’s markets following the week-long Lunar New Year holidays.
Investors are optimistic about a strong market start, eagerly awaiting signals from Chinese authorities regarding potential measures to bolster various sectors, including stocks and property.
Mainland China’s financial markets remained closed throughout the week for the Lunar New Year celebrations.
The Hang Seng index surged by 395.33 points, or 2.48%, closing at 16,339.96, while the Hang Seng China Enterprises index climbed 2.73% to 5,558.86.
Reports indicate that five state-owned Chinese banks have been paired with over 8,200 residential projects for development loans as part of the “whitelist” mechanism aimed at injecting liquidity into the crisis-hit property sector, as detailed by government-backed media outlet The Paper.
Notable sector performances included a 0.9% rise in the Hang Seng energy sub-index, a substantial 3.71% surge in the technology index, a 1.41% increase in the financial sector, and a significant 6.76% jump in the mainland property index.
Leading the gains on the Hang Seng was WuXi Biologics, soaring by 12.06%, while among H-shares, Longfor Group recorded an impressive 10.22% increase.
Elsewhere in the region, MSCI’s Asia ex-Japan stock index demonstrated strength with a 0.96% gain, while Japan’s Nikkei index closed up 0.86%.
