Alibaba, JD.com, WH Group spur Hong Kong stocks as Covid cases in mainland subside, China ramps up efforts for economy
- Stocks capped their best gain in three weeks on optimism lower Covid-19 cases will allow China to reopen locked-down cities vital to the economy
- Alibaba, WH Group and China Merchants Bank led the winners, each gaining by at least 4 per cent
The Hang Seng Index advanced 1.7 per cent to 20,276.17 at the close of Thursday trading. The Tech Index added 2.2 per cent while the Shanghai Composite Index gained 0.6 per cent to extend a rebound from a two-year low.
China Merchants Bank surged 5.7 per cent to HK$46.95, the most in two months. Pork processor WH Group climbed 4.1 per cent to HK$5.60 and Alibaba Group, the owner of this newspaper, advanced 4.4 per cent to HK$88.25. JD.com increased 4.4 per cent to HK$229.60
Sentiment improved as Covid-19 infections dropped in some major mainland cities, with new cases in Shanghai falling to a three-week low on Wednesday. Infections in Beijing were brought under control after mass testing covering most areas in the capital. Authorities lifted a two-month lockdown in the northeastern city of Changchun from Thursday.
Still, the Hang Seng Index has lost 7.8 per cent this month, heading for a third month of setback abetted by the fallout from China’s tough zero-Covid strategy.
