(Bloomberg) – Chinese stocks in Hong Kong headed for their best week since 2015 as the US audit of the country’s companies showed signs of progress, adding to previous optimism. due to bet Beijing can ease its strict pandemic regulations.
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A Hong Kong-listed stock index rose as much as 8.8% in Friday trading. The index is up about 12% in the week after previously unverified social media posts went viral, claiming that a committee was being formed to evaluate scenarios on how to get out of Covid Zero. . That helped it erase the losses it suffered after last month’s Communist Party congress.
Technology stocks were the biggest gainers on Friday, with the Hang Seng Tech Index up nearly 11%. According to people familiar with the matter, US audit officials completed their first round of spot checks on Chinese companies ahead of time, a sign of progress in the process being followed. closely monitor to prevent the delisting of hundreds of shares from Alibaba Group Holding Ltd. Yum China Holdings Inc.
Willer Chen, an analyst at Forsyth Barr Asia Ltd., said: “With so much positive talk in the market, the indices are having a gentle bounce,” said: “talking about opening up.” back, he added.
Rumor providers have channeled strong optimism this week in vibrant markets in China, where traders are looking for reasons to buy shares in one of the main active markets. worst performance in the world. Shares have rallied even as authorities give no indication of a change in their stance on Covid Zero.
The CSI 300 index, the benchmark for mainland stocks, also gained more than 3% on Friday. Optimism spread to money markets, with the offshore yuan rising more than 1%. Up more than 10% on the week, Hong Kong’s benchmark Hang Seng index is set to post its best gain since 2011.
Shares continued to rise on Friday after falling in the previous session as China’s top health authority reiterated its commitment to the Covid Zero policy.
“There is still a tug-of-war going on between bulls and bears, bottom farmers and weary investors,” said Justin Tang, head of Asia research at United First Partners. . “It will continue in the short term until we have a clearer idea whether there will be more pro-market policies under new leadership.”
READ: Important meetings to give clues on China’s economic development path
– With support from Abhishek Vishnoi.
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