HK stocks rally first day after National Security Law takes effect

Source:Global Times Published: 2020/7/2 11:49:18

Photo: Xinhua


Hong Kong stocks opened high on Thursday, following a city-wide holiday in the Special Administrative Region on Wednesday and the unveiling of the new National Security Law for Hong Kong on Tuesday. 

The Hang Seng Index rose 0.56 percent at opening, led by a rally in the housing sector. Sunac China Holdings was up 6.16 percent and Vanke up 4.08 percent. 

Hong Kong’s stock market is expected to rally after the implementation of the National Security Law as investors are anticipating injections of more capital and business from the mainland. 

Hong Kong’s stock exchange has also been welcoming a new wave of secondary listings from mainland firms already listed in the US. In the first six months of this year, several Chinese tech companies including e-commerce giant and internet giant NetEase have made secondary listings in Hong Kong. priced its secondary listing in Hong Kong at HK$226 ($29.16) per share, and raised around $3.9 billion in its IPO. NetEase was priced at HK$123 per share, raising HK$21.09 billion.  

The listings from the two mainland companies have made Hong Kong the world’s third-largest IPO market, according to a report from Reuters, citing EY, an accountancy firm. 

Global Times


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