Hong Kong Stocks Rally Again with Hang Seng Index Rising Over 20,000 Following Politburo Pledge

MT Newswires Live09-27

Hong Kong stocks registered the biggest week in 26 years after shares rallied again for the fourth day, with the Hang Seng Index rising past 20,000 following the readout from the Politburo meeting.

The Politburo meeting, led by party chief Xi on Thursday, promised to put more fuel in the country's countercyclical fiscal policies and raised expectations for a further boost in domestic demand.

The Hang Seng Index jumped 3.55%, or 707.72 points, to close Friday's session at 20,632.30. The Hang Seng China Enterprises Index also jumped 3.01%, or 213.20 points, to close at 7,299.90.

In economic news, Hong Kong's Census and Statistics Department declared growth in the city's total exports and imports year on year in August. Exports rose 6.4% in August, while imports increased 7.9%.

Meanwhile, average wages in Hong Kong increased 3.7% year over year in nominal terms in June, according to data from the city's Census and Statistics Department released Thursday.

Furthermore, China's industrial profits slumped to their sharpest this year at 17.8% in August, according to data from the National Bureau of Statistics released Friday.

In corporate news, Zhejiang Taimei Medical Technology (HKG:2576) launched its initial public offering in Hong Kong Friday, seeking to raise up to HK$291.4 million.

Wing Lee Development Construction (HKG:9639) also launched its initial public offering in Hong Kong, seeking to raise as much as HK$182.5 million.

Shirble Department Store Holdings (China) (HKG:0312) reported a loss attributable to the owners of 18.5 million yuan for the first half ended June 30, compared with 63.9 million yuan the prior year. The company's shares were up nearly 31% on Friday's close.

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