Hong Kong Market surges 3.1%

Hong Kong stock market finished session higher on Thursday, 07 October 2021, as investors chased for bargain buying across the board on tracking solid lead from Wall Street overnight, and hopes of a short-term solution to the US debt ceiling after reports that U.S. Congressional Democrats and Republicans could reach a deal to raise the debt limit by a certain level that could tide the Treasury over until December.

At closing bell, the benchmark Hang Seng Index surged 3.07%, or 735.24 points, to 24,701.73. The Hang Seng China Enterprises Index grew 3.57%, or 300.33 points, to 8,713.05. Mainland China markets remained closed on Thursday for the Golden Week holidays.

Shares of tech companies advanced, with Alibaba Group Holding gaining 7.3% to HK$147.30, as bargain buying resumed after sliding 34% to a record-low in the past three months through Wednesday.

Shares of property developers were also up, after Chief Executive Carrie Lam Cheng Yuet-ngor unveiled plans to develop a 300 sq km hub bordering Shenzhen, known as Northern Metropolis. Henderson Land and New World Development surged by at least 3%.

Chinese Estates shares spurted 32% after its controlling shareholder offered to take the company private. The family of tycoon Joseph Lau, which controls 75% of the group, offered HK$4 each to buy the rest of the company, an 83.5% premium over its last-traded price.

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