Hong Kong Market spurts as China COVID pivot

Hong Kong share market finished session with strong gain on Monday, 05 December 2022, as signs of China easing its strict zero-COVID strategy supported investors' appetite for riskier assets.

China loosened Covid-related curbs in top-tier cities and in at least other 10 provincial capitals in further signs of reopening momentum.

The China moves helped offset a forecast-busting US jobs report that dented hopes that the Federal Reserve will take a softer approach to hiking interest rates in its battle against inflation.

At closing bell, the benchmark Hang Seng Index rebounded 842.94 points, or 4.51%, to 19,518.29, the highest close since September 1. The Hang Seng China Enterprises Index was up 337.55 points, or 5.3%, to 6,706.29.

Among blue chips, Alibaba surged 9.3% to HK$92.65, and Tencent gained 6.1% to HK$314 while Meituan and JD.com added 3.8% and 11%, respectively. AIA rose 4.7% to HK$83.40, hotpot restaurant operator Haidilao climbed 7.7% to HK$21.80 and developer Longfor rallied 17% to HK$26.

BYD added 2.4% to HK$196 after saying that sales of electric cars surged 219% from a year earlier in the first 11 months of the year.

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