Hong Kong Market extends gain for third straight session

The Hong Kong stock market finished higher for a third straight session on Tuesday, 15 September 2020, on the back of upbeat Chinese data and optimism about novel coronavirus vaccines. At closing bell, the benchmark Hang Seng Index added 0.38%, or 92.48 points, to 24,732.76. The Hang Seng China Enterprises Index gained by 0.23%, or 22.43 points, to 9,829.07.

Property developers led the gains in Hong Kong, while catering and hotel operators jumped on the improvement in China's retail sales. Chinese airlines also rose on expectations that a stronger yuan will bolster profits by reducing the repatriated value of foreign debt denominated in the US dollar. Wharf Real Estate Investment climbed 5% to HK$32.75 and Country Garden gained 2.5% to HK$9.90.

China Evergrande New Energy Vehicle Group slid 11% to HK$25.05, after the electric-car manufacturer said it would seek to raise HK$3.99 billion (US$516.1 million) by selling new shares in a private placement to a group of investors that includes Tencent Holdings and Didi Chuxing.

The Hong Kong dollar appreciated, rising to 7.7500 per US dollar, the top end of its trading band of between 7.7500 and 7.8500. This will require the Hong Kong Monetary Authority - the city's de facto central bank - to step in and weaken the local currency and bring its exchange rate back within the trading band.

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