Hong Kong Market surges on intervention signs

Hong Kong share market finished session strongly higher on Tuesday, 06 February 2024, on tracking gains in Mainland China bourses, after China's sovereign fund pledged to support the stock market and the securities regulator vowed to crack down on malicious short-selling.

Investor sentiment quickly lifted after China Central Huijin Investment said it would further increase investments in exchange-trade funds (ETFs) to safeguard stable capital market operations. Also helping sentiment, China's securities regulator said it would tighten scrutiny of margin financing, malicious short selling and seek to ward off risks involving pledged shares.

At closing bell, the benchmark Hang Seng Index surged 626.86 points, or 4.04%, to 16,136.87. The Hang Seng China Enterprises Index spurted 256.39 points, or 4.91%, to 5,473.75.

Among blue chips, Alibaba Group surged 7.6% to HK$76, Meituan gained 6.5% to HK$69.25, and Tencent added 4% to HK$290.80. Chinas biggest chip maker SMIC rose 8.6% to HK$15.34 and developer Longfor Group rallied 10% to HK$9.18. EV maker BYD advanced 5.4% to HK$180.90, and peer Geely Auto soared 7.5% to HK$8.19.

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