Monday, 13 July 2015 14:18
HONG KONG: Hong Kong equities ended 1.30 percent higher Monday, tracking another rally in China and following news Greece had finally struck a bailout reform deal with creditors that keeps it in the eurozone.
The benchmark Hang Seng Index added 322.73 points to 25,224.01 on turnover of HK$ 136.80 billion (US$ 17.65 billion).
“The market had started pricing in fears we’re going to see a terrible outcome from China and Greece, but we’ve started feeling more optimistic now,” Koichi Kurose, Tokyo-based chief market strategist at Resona Bank, told Bloomberg News.
“Stock prices are reflecting hopes Greece will come to a resolution. China looks to have reached its lows.”
The HSI has now advanced more than seven percent in three sessions as traders move back into the market, which had tanked in recent weeks with mainland Chinese stocks.
Shanghai plunged by a third in just under a month from its June 12 peak until authorities announced a batch of measures to prevent an all-out crash. Among measures announced were a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months.
Shanghai’s composite index added 2.39 percent Monday, meaning it has soared 13 percent in the past three trading days. Also, more than 400 companies resumed trading after half the market was suspended over the past month to stop a market meltdown.
As the mainland sell-off spread into Hong Kong, so the recovery has also provided lift to the southern Chinese financial hub.
Macau gaming firms were among the big gainers on reports the government may scale back plans to introduce a smoking ban, which had fuelled a sell-off earlier this month.
Sands China surged 4.74 percent to HK$ 30.95 and Galaxy Entertainment added 3.96 percent to HK$ 35.45.
Buying confidence was fortified towards the end of the day by news of the Greek debt breakthrough in Europe that will keep it in the euro family.
The leaders of Greece and its creditors announced after 17 hours of talks that they had sealed a deal on Athens reforms, ending a bitter struggle that has lasted since the start of the year.
After agreeing to tough austerity measures, Greece will gain access to much-needed cash that will allow its banks — closed to prevent a run on them — to reopen.
Among other gainers, market heavyweight HSBC added 1.40 percent to HK$ 69.05, Internet giant Tencent climbed 1.07 percent to HK$ 150.50 and insurer AIA ticked up 2.02 percent to HK$ 50.55.
