The Hang Seng Index rose 0.9 per cent to 19,243.72 at 10.30am local time, heading for its highest close since August 10. The Hang Seng Tech Index slipped 0.3 per cent and the Shanghai Composite Index added 0.3 per cent.
Hong Kong stocks have been on a tear in recent sessions after China ramped up policy support for the battered property sector and amid dividend tax relief speculations, with the result that the Hang Seng Index produced the best performance among major stock benchmarks worldwide last month.
China has been ramping up policy support for the property market by lifting all restrictions in home purchases in major cities like Hangzhou and Xian, while mainland buying of Hong Kong stocks has accelerated on speculation that the 20 per cent dividend tax on shares available in the Stock Connect programme, will be removed.
Broader gains were triggered after core inflation data in the US sparked expectations the US central bank will cut its policy interest rate in September and December. Japan’s Nikkei 225 and South Korea’s Kospi both climbed 0.8 per cent, while and Australia’s S&P/ASX 200 added 1.8 per cent.
China property: Hangzhou mulls buying unsold homes to boost market
China property: Hangzhou mulls buying unsold homes to boost market
Investors will be busy sifting through corporate earnings and economic data both today and tomorrow for clues on whether the rebound in Hong Kong stocks can be sustained. Meituan, JD.com and Baidu, the three bellwether companies on the Hang Seng Index, are due to release results on Thursday. China’s statistics bureau is expected to disclose April data on industrial production, retail sales and investments on Friday.
Alibaba Group Holding slumped 4.1 per cent to HK$79.25 after the result for the first quarter fell short of projections.
Marketingfore Management, a cloud-based software developer, jumped 10 per cent to HK$48 on the first day of trading in Hong Kong.