Hong Kong and China’s stocks have been through a successful week

All main stock indexes on Shanghai and Shenzhen stock exchanges have grown in 2%. Hong Kong stocks were similarly successful, when they added up 1% amid riots caused by a new security law.

Hong Kong and China’s stocks have been through a successful week

Shanghai and Shenzhen stocks kept growing during last week and reached its five year record-highs. The increase was caused by optimistic expectations of economic development in the most populated country worldwide. Chinese service sector has experienced quite fast recovery in the second half of first quarter after anti-pandemic measures were eased by the government. Current results show that Chinese economy recovers as a whole and its speed will be more balanced than before the pandemic outbreak. However, it may still take few months until performance of Chinese economy returns to its pre-pandemic values. 

Hong Kong stocks have been through a similar progress. Main index Hang Seng grew to its highest values in last 4 weeks despite riots caused by the new security law. It seems that investors expect more liquidity on stock exchanges due to connecting Hong Kong to mainland China. The connection should also bring many new Chinese companies onto Hong Kong Stock Exchange, what motivates investors into purchasing in Hong Kong.


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