Hong Kong share market skyrocketed on Friday, 02 June 2023, as investors chased for bottom fishing across the board, with shares in property developers and construction related companies leading gains on China stimulus bets and a possible pause in US interest-rate hikes. Meanwhile, stronger than expected domestic retail sales figures also propelled positive sentiments. At closing bell, the benchmark Hang Seng Index spurted 733.03 points, or 4.02%, to 18,949.94. The Hang Seng China Enterprises Index surged 278.69 points, or 4.53%, to 6,428.33.
As per reports, the government is considering a new basket of measures to support the property market. Some of the ideas that are discussed include reducing the down payment in some non-core neighborhoods of major cities, lowering agent commissions, as well as further relaxation of constraints for residential purchases, the report added.
Retail sales in Hong Kong increased by 15% year over year in April, reaching HK$34.7 billion. Although the growth rate was lower than the 40.8% surge witnessed in March. A government spokesperson credited the April increase to the ongoing improvement in consumer sentiment and the rise in visitor arrivals. The spokesperson further expressed optimism regarding the future of the retail sector, anticipating that the revival of inbound tourism and strong local consumption demand would continue to drive retail sales in Hong Kong.
Among blue chips, Tencent jumped 6% to HK$334.20 to lead the rally while Alibaba Group surged 6.7% to HK$82.50 and Baidu gained 7.3% to HK$130.50. Developer Longfor soared 17.2% to HK$17. BYD added 4.5% to HK$245 after electric-vehicle sales doubled in May. Peers Nio, Li Auto and Xpeng rose by 3.8 to 7.9%.
Shares of both Galaxy Entertainment and MGM China closed up nearly 4% after reports, citing that the casino operators are planning to open casinos in Thailand amid the deteriorating outlook in Macau.
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