Hong Kong stocks rise as Shanghai eases property restrictions, optimism in China's property market

From South China Morning Post: 2024-05-27 22:46:37

Hong Kong stocks rose for a second day as Shanghai eased restrictions on home purchases, boosting optimism in China’s property market. The Hang Seng Index increased 0.6%, while the Tech Index rose 0.8%. Chip makers also saw gains following the creation of a record chip investment fund in China.

Shanghai implemented measures to revive China’s property market, including subsidies for homebuyers and lower down payment ratios. Analysts believe the increased policy support will fuel a recovery in the property market and potentially boost domestic demand.

Investors are closely watching the property market and awaiting May data for manufacturing PMI. The Hang Seng Index has seen a 6% increase in May, heading for the fourth consecutive month of gains. Alibaba Health Information Technology also reported a 65% increase in net income.

China Vanke experienced mixed outcomes with a 0.3% increase in Hong Kong shares but a 2.4% drop in onshore prices. The debt-stricken developer sold an unfinished project at a loss of 1.8 billion yuan. Other Asian markets saw mixed results, with Japan’s Nikkei slipping and South Korea’s Kospi slightly rising.



Read more at South China Morning Post: Hong Kong stocks extend gains, cheered by Shanghai’s property easing moves