(Bloomberg) — Chinese stocks in Hong Kong rose as traders returned from a holiday, with spending and tourism data suggesting a recovery is gaining traction in the city and on the mainland.
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The Hang Seng China Enterprises Index gained as much as 2% early Thursday as tech and financial shares led the advance. The move tracks a 1.4% rise in the Nasdaq Golden Dragon China Index over the past three sessions. Onshore markets remain closed for the rest of this week.
Stocks are extending their bull run as China’s Lunar New Year travel and box office data showed a strong revival in demand, with the latter exceeding pre-pandemic levels, as the nation moves on from Covid Zero. The holiday period also saw tourism recover in Hong Kong and Macau as cross-border travel revved up.
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The global equities backdrop is also supportive. Tech stocks drove US equities higher earlier this week as investors await the release of key earnings, and as comments by Federal Reserve officials dialed back fears of overly aggressive policy moves.
Hong Kong’s benchmark Hang Seng Index as well as the Hang Seng China gauge rallied for five straight weeks before the holidays, boosted by the economic reopening and pro-growth policies.
If the upbeat mood continues, the CSI 300 benchmark may enter a bull market when shares resume trading on Monday. The gauge has surged a little more than 19% since its late October trough.
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