Hong Kong Market rebounds on bargain buying

Hong Kong share market finished session modestly higher on Wednesday, 23 November 2022, as investors chased for bottom fishing after five days of straight decline.

At closing bell, the benchmark Hang Seng Index added 99.40 points, or 0.57%, to 17,523.81. The Hang Seng China Enterprises Index rose 43.89 points, or 0.74%, to 5,945.11. The benchmark slipped 5% over the past five days.

Overall trading activity was somewhat subdued amid concerns about economic fallout of stricter COVID-19 curbs in China, ahead of the minutes from the Federal Reserve's latest meeting scheduled to be released later in the day and the US market Thanksgiving holiday on Thursday.

Investors will parse the minutes from the Fed's meeting on November 1-2 to be released later on Wednesday to see how united policymakers were around a higher peak for interest rates than previously signalled in their fight against inflation. Some investors believe that the Fed may decide to scale back the amount of its rate increases as early as next month's meeting in response to lower-than-expected inflation numbers.

China reported 29,157 new COVID-19 infections for Nov. 22, a new high in more than seven months, while the financial hub Shanghai said it would tighten rules for people entering the city to combat the recent COVID-19 outbreak in the country.

Among blue chips. Kuaishou Technology surged 5.7% to HK$53.10 and Baidu appreciated 3.4% to HK$92.95. Alibaba Group Holding climbed 3.2% to HK$75.40 and Tencent Holdings gained 1.7% to HK$282.

BYD slumped 1.8% to HK$175 after Berkshire Hathaway trimmed its stake again. Warren Buffett's Berkshire sold 3.23 million shares on November 17 at an average price of HK$195.42 each or HK$630.3 million, according to an exchange filing on Tuesday. The sale reduced its stake in the Chinese carmaker to 15.99% from 16.28%.

Meituan fell 1.1% to HK$138.40 after Naspers, a Tencent shareholder, said it would sell stock in the Chinese company once it receives Meituan shares as a special dividend distributed by Tencent.

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