Hong Kong’s stock index closes higher as China’s state funds step in to prop up the market
Stocks in Hong Kong, Shanghai and Shenzhen rise after several Chinese state funds step in to prop up the market
The Hang Seng Index rose 1.5 per cent to 20,127.68 at the close of trading on Tuesday, advancing for the first time in four trading days, following a rout that wiped out at least HK$194 billion (US$25 billion) in market value. The Hang Seng Tech Index surged 3.8 per cent. The CSI 300 index, which tracks the 300 largest stocks in Shanghai and Shenzhen, climbed 1.7 per cent.
Elsewhere in the Asia-Pacific region, Japan’s Nikkei 225 Index rose 6 per cent and Australia’s S&P/ASX 200 advanced 2.3 per cent. Stock indexes also rose in Seoul, Wellington, and Kuala Lumpur while Singapore’s benchmark dropped.
Leading the Hong Kong market, technology companies rose following a sharp swoon a day earlier. Video game developer NetEase jumped 7.5 per cent to HK$145.30, reversing a 17.9 per cent plunge on Monday. E-commerce giant JD.com surged 8.9 per cent to HK$137.60 and travel booking platform Trip.com advanced 5.7 per cent to HK$433.40.
On the downside, Xinyi Glass Holdings retreated 4.5 per cent to HK$6.66 and Hang Seng Bank fell 3.6 per cent to HK$94.55.
One company made its trading debut on Tuesday: China Nerin Engineering skyrocketed 386.84 per cent to 99.90 yuan (US$13.68) in Shanghai.
Central Huijin Investment, a unit of China’s US$1.2 trillion sovereign wealth fund, bought exchange-traded funds (ETFs) on Monday, intervening in the nation’s stock market which was reeling from the mayhem inflicted by reciprocal tariffs from the US.