Hong Kong Stocks rebound on recovery hopes

Hong Kong stock market finished session higher on Friday, 26 March 2021, snapping five-day slide, as investors scooped up oversold stocks, thanks to increased optimism for the outlook of the U.S. economy.

At closing bell, the benchmark Hang Seng Index advanced 1.57%, or 436.82 points, to 28,336.43. The Hang Seng China Enterprises Index increased 2.06%, or 221.79 points, to 10,966.06.

Risk appetite made a comeback across the world on economic-recovery bets after US President Joe Biden announced a new goal of administering 200 million coronavirus vaccinations within his first 100 days in office. The new goal is double the 100 million shots in 100 days that Biden initially pledged and was reached before his 60th day in office.

Federal Reserve Chairman Jerome Powell acknowledged Thursday that fiscal help from Congress and accelerated vaccine distribution has allowed the U.S. to recover faster than expected.

The US Labour Department data showed claims for unemployment benefits dropped to a one-year low last week, a sign that the US economy is on the verge of stronger growth as the public health situation improves and temperatures rise.

Country Garden Holdings, China's second largest developer by sales, paced gainers among blue chips in Hong Kong, rising 8.1% to HK$9.73, after reports that it had cut debt by 43.1 billion yuan (US$6.6 billion) to 326.5 billion yuan last year.

Xiaomi soared 6.3% to HK$25.40 on reports that the smartphone giant was planning to make electric vehicles using Great Wall Motor's factory. Great Wall's Hong Kong stock shot up 10.4% to HK$21.90.

Shares of national sports brands rose as the Chinese government joined mainland consumers in pressing global fashion brands to reverse the Xinjiang cotton boycott and correct their mistakes. Anta Sports rose 5.6% to HK$128.10. Li Ning rose 2.9% to HK$51.45. Bosideng International rallied 7.2% to HK$3.57.

China Evergrande New Energy Vehicle Group shot up 11.4% to HK$63.00 after announcement that it had received HK$21 billion from five investors as part of a share subscription agreement.

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