China Tech Market Reform Plans Lifts the Hang Seng Index 2%

Li Chen
19 Jun, 2024
Hong Kong

Market indexes in Hong Kong soared more than 2% after the top Chinese securities regulator announced plans to reform to attract more investment in the tech sector at an industry gathering. 

The Hang Seng index advanced 2% and the CSI index gained 0.5% in the hopes that the securities regulator Wu Qing would follow up with concrete measures after the announcement at the Lujiazui financial forum. 

Qing comments suggested that the government plans to strengthen investor rights, improve listing quality, and facilitate mergers for tech companies on the tech board of the Shanghai Stock Exchange. 

Qing's upbeat comments were well received by investors on the mainland and in Hong Kong, raising hopes that the move could attract more foreign investments in the high-tech sector. 

Moreover, market sentiment was bolstered after benchmark indexes in New York advanced to new record highs after tech companies led the surge for the third day in a row. 

Nvidia, the company at the center of the latest boom in artificial intelligence, advanced to record heights and became the most valued company in the world. 

 

China Stock Movers 

The CSI 300 index declined 0.5% to 3,529.70, and the Hang Seng index advanced 2.1% to 18,290.31. 

Lenovo Group advanced 7% to HK$11.86 in the hope that the company is likely to be one of the key beneficiaries of the recent advances in artificial intelligence.

Geely Automobile Holding gained 3.9% to HK$9.23 after a research note from HSBC noted that the company's May vehicle sales were ahead of market expectations because of a strong product cycle. 

Longfor Group Holdings rose 3% to HK$11.90, and the residential property developer said during its annual meeting on Tuesday that the company is steadily lowering its overall debt because of positive net cash flows.