Hong Kong Stocks Close Up More Than 3%

economy news online

Hong Kong stocks finished with another big gain Wednesday with tech firms leading the way after Ant Group was given the go-ahead to raise $1.5 billion for its consumer unit, suggesting Chinese government pressure on the firm was easing. news online

The Hang Seng Index climbed 3.22 percent, or 647.82 points, to 20,793.11. The Shanghai Composite Index added 0.22 percent, or 7.00 points, to 3,123.52, while the Shenzhen Composite Index on China’s second exchange edged up 0.06 percent, or 1.23 points, to 2,005.35.

The decision by officials to allow the fundraising comes after a crackdown on major technology firms in recent years, which saw Ant’s planned 2020 initial public offering in Hong Kong pulled at the last minute. The listing would have been a world record at the time.

News of China’s agreement sent shares in Alibaba soaring 8.7 percent in Hong Kong, while JD.com jumped more than seven percent and XD piled on more than nine percent.

“We view it as a signal on Ant’s regulatory rectification wrap-up,” Leon Qi, of Daiwa Capital Markets Hong Kong, said, according to Bloomberg News.

dan/lb