Hong Kong Market surges on policy support bets

Hong Kong share market finished session sharp higher on Monday, 18 July 2022, on the back of the People Bank of China governor pledge of strong support for the economy and as regulators urged lenders to extend loans to qualified real estate projects following a widening mortgage-payment boycott on unfinished houses.

At closing bell, the benchmark Hang Seng Index surged 548.46 points, or 2.7%, to 20,846.18. The Hang Seng China Enterprises Index was up 210.87 points, or 3.03%, to 7,168.89.

PBOC Governor Yi Gang pledged that the central bank will "increase implementation of prudent monetary policy" to support the real economy, which is facing downward pressure due to COVID-19 and external shocks.

Chinese regulators on Sunday urged banks to extend loans to qualified real estate projects and meet developers financing needs where reasonable, in an effort to ease concerns triggered by a widening mortgage-payment boycott on unfinished houses.

Shares of Chinese lenders and property developers advanced after authorities moved to ease a credit and housing crisis. China has urged lenders to provide credit to eligible developers to help them expedite delivery of homes delayed by a funding crunch,

Country Garden surged 6% to HK$3.51 while China Overseas Land added 3.8% to HK$23.05. Longfor Group climbed 4.1% to HK$29.15. Meituan jumped 5.9% to HK$189.70, while Alibaba Group Holding added 1.7% to HK$103.90. China Merchants Bank advanced 3.4% to HK$42.75.

Shares of energy sector also climbed up, with PetroChina rising 4.3% to HK$3.61 after the oil company said its first-half profits jumped 50 to 60% from a year ago, benefiting from rising oil prices. CNOOC jumped 5.7% to HK$9.85.

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