Listed stocks in China and Hong Kong rose on Wednesday after the Chinese government pledged to support beleaguered markets.
The Hang Seng HSI,
The state-run Xinhua News Agency . rose by 9% He said the government will take a number of market-friendly steps.
Shanghai SHCOMP Compound,
It rose 3.5%.
China’s Financial Stability and Development Commission has called for a monetary policy to support the economy, and that the authorities should wisely adopt policies that have a deflationary effect.
The Chinese government is also working with US authorities to support overseas listings, with the Securities and Exchange Commission last week identifying Chinese companies that could be delisted over the issue of auditor access.
jumped 36%, and Alibaba 9988,
It rose 27% and NetEase 9999,
It rose 23% in Hong Kong trade.
Other Hong Kong tech stars also jumped, including Meituan 3690,
and Tencent Holdings 700,
The commission also said it will maintain the stability of Hong Kong’s financial markets while strengthening regulatory communications and coordination with Hong Kong regulators.
“After disappointing markets earlier in the week not to cut interest rates, China’s state economic policy apparatus is taking major coordinated steps to support risk sentiment. These include State Council support for overseas listings, engagement with the United States on ADRs and, perhaps most importantly, That, indicating that regulations for big tech companies will soon end.There are also promises of ramping up support for the real estate sector,” said Stephen Innes, managing partner at SPI Asset Management.
Even with Wednesday’s rally, Hong Kong is down 14% this year, compared to an 11% drop for the S&P 500 SPX,
The comments did not touch on another factor weighing on Chinese stocks, which is the possibility of sanctions from the United States if the country provides arms to Russia.