Hong Kong Market extends gain on Xi-Biden summit

Hong Kong stocks extended gains on Tuesday, 16 November 2021, with the benchmark Hang Seng index finishing higher for sixth straight session, as sentiment was lifted by cordial opening to a key meeting between U.S. President Joe Biden and Chinese leader Xi Jinping.

U.S. President Joe Biden and Chinese President Xi Jinping started closely-watched virtual meeting warmly, with both leaders stressing their responsibility to the rest of the world to avoid conflict, with the Chinese leader calling the U.S. President an "old friend".

At closing bell, the benchmark Hang Seng Index added 1.27%, or 322.87 points, to 25,713.78. The Hang Seng China Enterprises Index added 1.54%, or 140.21 points, to 9,225.81.

Shares of property developers advanced as speculation of policy easing bets grew after authorities in several mainland cities loosened property market curbs to revive sluggish home sales.

Shares of gaming hardware firm Razer surged more than 11% after reports that executives at the firm plan to value the company at up to HK$35 billion in a take-private deal.

The defence related stocks fell amid easing tensions between U.S. and China in the meeting. President Xi Jinping and Joe Biden held a virtual summit over more than three hours on Tuesday. The Chinese leader called on both sides to find the right way to get along and urged his counterpart to return US policy on China to a rational track.Signs of any improvement in the bilateral ties could remove a geopolitical overhang in the market since the US-China trade war began in 2018 under the Trump administration.

Powered by Capital Market - Live News