Hong Kong Market ends near four-month high

The Hong Kong stock market finished session near a four-month high on Wednesday, 08 July 2020, as market sentiment was lifted on hopes of recovery in the Chinese economy after government pledged more spending after the COVID-19 pandemic ravaged the world's second-biggest economy. Meanwhile, buying sentiments underpinned further on expectations an influx of hot money into stock offerings will support prices, overshadowing concerns over new coronavirus infections in the city and further fallout from the national security law.

At closing bell, the benchmark Hang Seng Index added 0.59%, or 153.52 points, to 26,129.18. The Hang Seng China Enterprises Index rose 1.39%, or 147.70 points, to 10,748.11.

 

Hong Kong hosted 64 new stock listings in the first half this year, allowing mostly mainland companies to raise HK$87.5 billion (US$11.3 billion) in capital from investors.

Hong Kong's government may be fighting a third wave of coronavirus outbreak after confirming 19 of 24 new Covid-19 cases as local origins on Wednesday, in addition to 9 of 14 cases on Tuesday.

The monetary authority has spent almost HK$73 billion in 24 interventions this year to weaken the local dollar from the stronger end of its trading band. The Hong Kong dollar is back in the spotlight after Bloomberg News reported that some top advisers to President Donald Trump were mulling steps to undermine the city's 37-year currency peg to the US dollar to punish China for implementing the controversial security law in the former British colony.

New economy stocks led gains in Hong Kong. Tencent rose 5.2% to HK$543.50, while Meituan Dianping advanced 8% to HK$199.80.

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