Hong Kong Market ends above 25,000

The Hong Kong stock market finished higher for the second straight day on Wednesday, 05 August 2020, as investors clung to hopes of a post-pandemic recovery in the world's second-largest economy after latest data showed that China's services sector continued to grow in July but at a slower pace than in June. However, market gains were limited amid Sino-U.S. tensions after reports that the world's two largest economies will hold high-level talks on August 15 to review Beijing's compliance with the phase-one trade deal signed by the two nations.

At closing bell, the benchmark Hang Seng Index added 0.62%, or 155.91 points, to 25,102.54. The Hang Seng China Enterprises Index rose 0.52%, or 52.76 points, to 10,256.64.

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. Investors also started to return to the market as they saw new economy stocks and exchange operator Hong Kong Exchanges and Clearing regained momentum, leading to more confidence in the market

Tencent climbed on news it is pushing for a merger of China's biggest video game-streaming platforms, Huya and DouYu International Holdings to create a US$10 billion video game streaming giant. The WeChat operator and video games behemoth owns a 37% stake in Huya and 38% of DouYu.

Oil stocks were among top winners after oil prices climbed to their highest level in two weeks following the explosion in Beirut, the capital of Lebanon, and as the American Petroleum Institute reported a large draw in crude oil inventory, suggesting demand despite the raging coronavirus in the US. PetroChina added 4.5%, making it the benchmark's top percentage gainer, while Sinopec climbed 2.4%.

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