Dow Jones Newswires: Hong Kong consumer stocks extend rally

by | Nov 29, 2022 | Stock Market

Hong Kong consumer-goods and services stocks advanced further as China moved to reiterate its commitment to targeted pandemic curbs and avoid long-term restrictions. Consumer-goods makers and services providers jumped in Tuesday afternoon trading. Restaurant operator Haidilao International Holding Ltd.
rose as much as 15%, food-delivery company Meituan was recently 11% higher and sportswear maker Anta Sports Products Ltd.
advanced 7.6%. The benchmark Hang Seng Index
also extended gains, rising 5.0% to 18160.82.

The upturn came as Chinese top officials said they will hold a media briefing Tuesday on the country’s pandemic-control policies, days after protests broke out across China over growing outbreaks and partial lockdowns. During the briefing, authorities said “long-term restrictions must be rectified and avoided.” The comments likely eased market concerns and confusion over Beijing’s Covid-19 strategy. China’s State Council earlier this month loosened its pandemic-control guidelines. But local governments doubled down on movement curbs in recent weeks as infection numbers started to rise in the winter. “Once again, the easing of Covid-19 measures, at least the expectation for it, is the market focus,” said Kenny Wen, head of investment strategy at KGI Asia. He maintains his expectation for a postpandemic reopening in China in the first half of 2023. Mr. Wen also pointed to broadly higher risk-on sentiment Tuesday, after authorities stepped up support for the country’s embattled property sector, while the weakness in Hong Kong’s market Monday helped fuel buying interest. Investors are “seeing the market’s Monday drop as a buying-on-dip opportunity,” he said. Write to Yifan Wang at [email protected]

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