Hong Kong’s Hang Seng extends surge, rising about 9% as Tencent, Alibaba jump more than 20%
PUBLISHED TUE, MAR 15 20227:40 PM EDT
UPDATED AN HOUR AGO
Eustance Huang @EUSTANCEHUANG
CNBC.com
KEY POINTS
-- Shares in Asia-Pacific were higher in Wednesday trade, as Chinese stocks saw a strong rebound following recent heavy losses..
-- Hong Kong’s Hang Seng index surged 8.94% in afternoon trade, seeing a rebound after days of heavy losses earlier this week.
-- The U.S. Federal Reserve is set to announce its latest interest rate decision. The central bank is widely expected to raise rates by a quarter point, its first hike since 2018.
SINGAPORE — Shares in Asia-Pacific were higher in Wednesday trade, as Chinese stocks saw a strong rebound following recent heavy losses.
Hong Kong’s Hang Seng index surged 8.94% in afternoon trade, after tumbling nearly 6% on Tuesday to close at its lowest since Feb. 2016.
Chinese tech stocks in Hong Kong saw big gains, as shares of Chinese tech giant Tencent rocketed 23.29%, Alibaba soared 24.63% and NetEase jumped 23.31%. The Hang Seng Tech index surged 21.89%.
Mainland Chinese stocks also saw robust gains as the Shanghai composite climbed 3.48% to close at 3,170.71 and the Shenzhen component soared 4.019% to 12,000.96.
The bulk of the gains Wednesday came after a Chinese state media report signaled support for Chinese stocks. U.S. and Chinese regulators are progressing toward a cooperation plan on U.S.-listed Chinese stocks, the report said, citing a financial stability meeting Wednesday chaired by Vice Premier Liu He.
The report said Beijing supported Chinese stock listings overseas, and would work towards stability in Hong Kong’s financial market as well as the struggling real estate sector.
Chinese tech stocks have been under pressure in recent days amid multiple concerns, including a Wall Street Journal report that Tencent could face a record fine for violating anti-money laundering rules.
Fears of U.S.-listed Chinese firms being delisted stateside also recently resurfaced after the Securities and Exchange Commission identified five U.S.-listed American depositary receipts of Chinese companies that failed to comply with the Holding Foreign Companies Accountable Act, further weighing on investor sentiment.
The sharp reversal comes as investors continue to monitor the pandemic situation in the country, with China grappling with its most severe Covid outbreak since the height of the pandemic in 2020, with major cities scrambling to limit business activity.
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Hong Kong's Hang Seng extends surge as Tencent, Alibaba jump more than 20% (cnbc.com) |
