Hong Kong – Stocks Are Off to Their Best Start Since 2018.
The first trading session of 2023 saw Hong Kong equities post the biggest increases since the beginning of 2018.
The Hang Seng index increased by 363.88 points, or 1.84%, on Tuesday. This was the index’s largest one-day increase since January 2018, when it increased by almost 2%.
“While it is inevitable to see further surges and more widespread in inflection at the initial stage of opening, the outlook for the Chinese economy has brightened for 2023,” Redmond Wong, Saxo Capital Markets greater China market strategist, said in a note.
“In addition to the reopening, China has intensified its effort to support the distressed property sector and given property developers access to credits and equity financing which had been denied to them for the most part of 2022,” Wong wrote.
Chinese real estate developer stocks listed in the city increased on Wednesday. Country Garden increased by more than 7%, Longfor Group increased by over 12%, and Cifi Holdings Group increased by 13%.