China and Hong Kong stocks extend gains on reopening hopes

China and Hong Kong stocks ended higher for a second session on Wednesday, driven by upbeat remarks by Chinese regulators about policy supports and rising expectations among investors about easing of strict COVID-19 measures.

China and Hong Kong stocks ended higher for a second session on Wednesday, driven by upbeat remarks by Chinese regulators about policy supports and rising expectations among investors about easing of strict COVID-19 measures. ** China's blue-chip CSI 300 Index ended up 1.2%, while the Shanghai Composite Index rose 1.15%.

** Hong Kong's Hang Seng Index rallied 2.41%, while the Hang Seng China Enterprises Index jumped 2.79%, extending Tuesday's rally, after unverified social media posts about China easing its COVID curbs. ** Hong Kong market was closed early in the afternoon, after a typhoon 8 warning signal.

** Asian shares ended higher on China boost, after markets made a wobbly start ahead of the U.S. Federal Reserve's policy outcome later in the global day, with many looking for any signs of a slowdown in future rate hikes. ** Structural reform will continue to fuel China's economic growth, and the country's reform and opening-up policy will continue, Yi Gang, governor of the People's Bank of China, told the Hong Kong Monetary Authority's Global Financial Leaders' Investment Summit.

** "We believe China could soon fine-tune its COVID restrictions, with a more targeted approach, less restrictive quarantine guidance and the more balanced assessment of the virus," Morgan Stanley analysts said in a note. ** However, a Chinese industrial park that hosts an iPhone factory belonging to Foxconn in Zhengzhou announced a fresh COVID-19 lockdown..

** Among top performers, automobiles gained 4.3%, while Media, and Healthcare companies advanced 2.8% and 1.5% respectively. ** In Hong Kong, Macau gaming operators and tech firms jumped 10.2% in the afternoon, healthcare companies surged 7.1%, while tech firms were up 2.7%, to lead the rally.

** Hong Kong-listed Chinese pharmaceutical firm CanSino Biologics soared as much as 63%, while its mainland stock jumped 20%, hitting its daily trading limit, as Jiangsu province announced their plans to adopt CanSino's inhalable COVID-19 vaccine in 13 cities.