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Hong Kong stocks rise as Beijing proposes steps to boost state-backed firms’ value
China’s state assets watchdog also included proposals on M&As, market-oriented reforms, information disclosure and stock buy-backs
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Hong Kong stocks rose as investors cheered the introduction of guidelines to help state-owned companies boost their values and the halving of service fees for dividend payouts.
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The Hang Seng Index gained 0.8 per cent to 19,864.55 at the close on Wednesday, the first gain in two days. The Hang Seng Tech Index added 1.8 per cent. On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index strengthened 0.6 per cent.
The gains were led by mainland Chinese carmakers. Li Auto jumped 5.4 per cent to HK$89.90 and Geely Auto added 4.1 per cent to HK$15.68. Hansoh Pharma advanced 3.9 per cent to HK$18.48 and smartphone maker Xiaomi added 2.8 per cent to HK$30.80.
The State-owned Assets Supervision and Administration Commission, China’s state assets watchdog, late on Tuesday issued guidelines aimed at helping state-owned enterprises (SOEs) unlock market value of their listed units. The guidelines also included proposals on mergers and acquisitions, market-oriented reforms, information disclosure and stock buy-backs.
The Hang Seng China Central SOEs Index, which tracks companies with state-owned enterprises as their largest shareholders, rose 0.8 per cent. China Unicom rose 2.1 per cent to HK$7.17, and PetroChina increased 1.4 per cent to HK$5.85.
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