Hong Kong stocks rise more than 3% on China easing COVID-19 lockdowns

HONG KONG: Hong Kong stocks rose by more than 3 per cent on Tuesday (May 17) afternoon following news of Shanghai authorities saying that the locked-down city will gradually reopen businesses.

The Hang Seng Index rose by 3.2 per cent, or 638.56 points, to 20,588.77.

The mainland’s two indices, the Shanghai Composite Index and Shenzhen Composite Index, traded up, while Manila, Singapore and Seoul showed positive gains through Tuesday despite the lukewarm lead from Wall Street the day before.

On Sunday, Shanghai’s vice mayor had said that the city would gradually reopen businesses starting Monday.

Though no specifics were given and millions still remain under lockdown, markets were cheered over the prospect of China’s economic engine reopening – as shuttered factories and stopped up ports have sent jolts across global supply chains.

Hong Kong’s positive showing on Tuesday came after a tumultuous few weeks, in which markets were roiled by fears of surging inflation, prolonged China lockdowns to stamp out COVID-19, and Russia’s war in Ukraine impacting crude prices.