New | Hong Kong market pulled to two-months high with sentiments recovery
Analysts cite improving sentiment as the risks of a hand landing in the mainland Chinese economy or a sharp depreciation of the yuan appear less likely
Hong Kong and mainland Chinese shares ended higher on Thursday, lifted by signs of a turnaround in the fortunes of Macau casinos, and hopes that Beijing will unveil additional stimulus to pump up the economy.
The Hang Seng Index climbed 2 per cent, or 448.26 points to 22,888.17, while the mainland-China tracking H-share index tacked on 2.1 per cent, or 218.51 points, to 10,552.93.
The Shanghai Composite Index climbed 2.3 per cent to 3,338.07, its highest closing level since August 21. The large -company tracking CSI 300 rose 2.4 per cent to 3,486.82. The Shenzhen Composite Index climbed 3 per cent to 1,941.28, and the ChiNext Index jumped 4.3 per cent to 2,404.53
Erwin Sanft, a China strategist at Macquarie, said market sentiment has improved in recent days as the risk of a hard landing in the Chinese economy or a sharp yuan depreciation both seem unlikely at this stage.
“There are also other positive messages including property recovering and the upcoming Communist Party meeting, which will help to sustain positive sentiment,” Sanft said.
He forecasts the Hang Seng will tack on an additional 15 per cent before the Lunar Nw Year.
Casino operator Galaxy Entertainment’s shares jumped 11.28 per cent to HK$29.10. The company reported at midday that profit before interest, taxes and depreciation amounted to HK$2.1 billion in the third-quarter, a rise of 13 per cent from the prior three-month period. Revenue for the quarter was up 5 per cent to HK$12.3 billion, helped by the opening of a new casino in May.
