Hong Kong stock investors shrug off Trump move to revoke city’s special status, focus on Covid-19 spike, vaccine progress
- Tencent rises 3.4 per cent, snapping three-session losing streak
- Two of six newly listed stocks in Hong Kong rise by at least 59 per cent
Hong Kong investors largely shrugged off US President Donald Trump’s move to revoke the special trade status of the city over Beijing’s controversial national security law, instead focusing on the spike in local Covid-19 cases and results of a promising new vaccine.
The Hang Seng Index swung 589 points during a session that featured dramatic moves in some recent high fliers like Chinese chip maker Semiconductor Manufacturing International Corp. The benchmark rose 0.01 per cent to 25,481.58.
Index heavyweight Tencent rose 3.4 per cent to HK$543, snapping a three-session losing streak. HSBC reiterated its “buy” rating on the WeChat operator and gaming giant and boosted the 12-month target price to HK$635.
The Hong Kong dollar traded near 7.7504, the stronger end of its dollar-peg band that has recently prompted the monetary authority to weaken its currency.
02:09
Trump signs Hong Kong Autonomy Act, ends city’s preferential trade status over national security law
Trump on late Tuesday signed an executive order ending the city’s preferential trade treatment and enacted a bill that would require sanctions against foreign individuals and banks for contributing to the erosion of Hong Kong’s autonomy. Beijing promptly warned of retaliation.
