HK shares hit over 2-1/2-year high ahead of China's return from holiday

Sands China

07/10/2024 09:38

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      Hang Seng hits highest since February 2022
    

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      SMIC soars over 20%; casinos jump, CITIC hits pre-pandemic
highs
    

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      China markets' return from holiday a crucial test
    

  
 (Updates to close)
       SINGAPORE, Oct 7 (Reuters) - Hong Kong shares hit their
highest in over two-and-a-half years on Monday, with tech and
tourism stocks surging ahead of China's return from a week-long
holiday.
    The Hang Seng  .HSI  touched its highest since February 2022
and closed 1.6% higher at 23.099.78. Volumes were high but well
below 15-year peaks hit last week.
    China's stock, bond and currency markets resume trade on
Tuesday and the open is keenly anticipated as a sign of whether
the blistering pre-holiday rally is on solid ground.
    Chinese markets had closed last week on a historic tear,
thanks to the most aggressive stimulus measures since the
pandemic. Authorities cut rates and hinted at fiscal support to
shore up an economy that, by Chinese standards, is ailing.
    "Mainland investors displayed immense enthusiasm by opening
accounts on a large scale during the holiday, which seems
unabated," said Kenny Ng, strategist at China Everbright
Securities International in Hong Kong. He expects a roaring gain
of 7%-10% on Tuesday, and then a test beyond that.
    "The sustainability of the A-share market's rise starting
from Wednesday will have a significant impact on the Hong Kong
stock market and overall investor confidence."
    Signs of persisting euphoria abounded on Monday.
    Chipmaker SMIC's  0981.HK  shares shot up more than 21% on
bets that government backing will be directed at the sector. The
stock is up 60% in two sessions.
    Travel-exposed Macau casino operators logged large gains,
with Sands China  1928.HK  and Galaxy Entertainment  0027.HK 
each up over 9%.
    State-owned conglomerate Citic  0267.HK  advanced nearly 13%
and hit its highest in more than five years and insurer China
Life  2628.HK  jumped 12.4%. 
    About 5.1 billion Hang Seng index shares were traded,
roughly 137% of the market's 30-day moving average.
    China's blue-chip CSI300 Index  .CSI300  has soared 25% over
five sessions, its strongest gain for such a period on record,
as frenzied buying strained brokers and trading systems.    
    On Sept. 30, the index and the Shanghai Composite  .SSEC 
notched their biggest single-day percentage gain since 2008.
China-focused hedge funds are reporting explosive returns.
    The rally has taken the Hang Seng from an also-ran to the
top-performing major market this year, with a 33% gain running
ahead of a 21% rise for the S&P 500  .SPX .

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China stocks rally strongly    https://reut.rs/3ZQNtV0
China's benchmark stock index logs biggest daily gain since 2008
   https://reut.rs/4dmrDfq
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 (Reporting by Tom Westbrook; Editing by Jacqueline Wong and
Sonia Cheema)
 ((tom.westbrook@tr.com; +65 6973 8284;))