Hong Kong Hang Seng rebounds 2%

Hong Kong share market finished session sharply higher on Monday, 13 March 2023, on tracking gains on the Mainland China bourse after Beijing surprised the market by keeping its central bank governor and finance minister in their posts at the annual session of the parliamentary gathering on Sunday, prioritising continuity as economic challenges loomed at home and abroad.

Meanwhile, buying sentiments underpinned further amid a bullish view on earnings among Chinese tech leaders, overshadowing concerns about a wider fallout among Chinese biotech companies including BeiGene from the collapse of Silicon Valley Bank.

At closing bell, the benchmark Hang Seng Index surged 376.05 points, or 1.95%, to 19,695.97. The Hang Seng China Enterprises Index advanced 144.33 points, or 2.24%, to 6,590.23.

China reappointed several top economic officials in a leadership reshuffle Sunday, giving investors greater continuity as Beijing overhauls financial regulation and grapples with escalating tensions with the US. People's Bank of China Governor Yi Gang, 65, will remain in his post, as will the finance and commerce ministers. He Lifeng, a close ally of President Xi Jinping, was appointed a vice premier, signaling he could replace Liu He as the nation's top economic official

China retained several of its top economic officials, including central bank Governor Yi Gang, in a surprise move as it looks to navigate the post-Covid recovery. The market likes the continuity and Yi Gang is seen as a reform-minded technocrat and the market gives him credibility for his handling of the monetary policy during the pandemic.

Among blue chips, Tencent jumped 4% to HK$344.80, while Alibaba Group added 2.6% to HK$83.25. Insurer AIA Group strengthened 3.6% to HK$84.45 and China Mobile rallied 4.6% to HK$64.85.

Xpeng appreciated 2.6% to HK$33.25 after joining the Hang Seng China Enterprises Index, which tracks the biggest mainland Chinese companies. Weibo, the Chinese microblogging platform operator, surged 4.7% to HK$134.90 on its entry into the Hang Seng Tech Index.

BeiGene added 0.9% to HK$135, after earlier sliding by as much as 2.4%. The firm said it had 3.9%, or about US$175 million, of its US$4.5 billion cash locked up in SVB.

HSBC fell 0.2% to HK$56.30 after buying the UK unit of the US bank. The lender bought the UK unit of SVB for a token sum of 1 (US$1.21). The strategic purchase will enhance its access to innovative and fast-growing firms in the global technology and life-science sectors, CEO Noel Quinn said in an exchange filing.

Powered by Capital Market - Live News