Hong Kong stocks rise on tech, property rebound

** Property shares rebounded after reports that Chinese policymakers plan to exclude debt accrued from acquiring distressed assets when calculating property developers' compliance with the "three red lines". ** The Hang Seng Property Index rose 2.5%, while Hong Kong-listed Chinese developers jumped 4.6%, the biggest one-day percentage rise in nearly two months.


Reuters | Hong Kong | Updated: 07-01-2022 14:22 IST | Created: 07-01-2022 13:59 IST
Hong Kong stocks rise on tech, property rebound
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Hong Kong stocks rose nearly 2% on Friday, marking their best day in a month, helped by a rebound in tech and property shares. ** The Hang Seng index rose 1.8%, to 23,493.38 points, while the China Enterprises Index gained 2.0%, to 8,231.28 points.

** The policy research office of the National Development and Reform Commission said in the official People's Daily that China should pay more attention to stabilising growth. The state planner also said the country has relatively big room for policy adjustments. ** The Hang Seng Tech Index gained 2%, bouncing from a record low hit in the previous session.

** Global tech shares had been hit this week by fears of U.S. quantitative tightening, which could reduce the present value of a company's future incomes. Tech shares are the most vulnerable to rising interest rates. ** Property shares rebounded after reports that Chinese policymakers plan to exclude debt accrued from acquiring distressed assets when calculating property developers' compliance with the "three red lines".

** The Hang Seng Property Index rose 2.5%, while Hong Kong-listed Chinese developers jumped 4.6%, the biggest one-day percentage rise in nearly two months. ** However, shares of Shimao Group Holdings slumped after the Chinese developer defaulted on a trust loan payment, underscoring continued stress in the country's property sector.

** Shimao's Hong Kong-listed shares slumped 5% to the lowest closing level since early-2009.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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