Hong Kong shares opened in the green on Friday, aligning with Wall Street, where major indices rose on clarity over the US federal reserve‘s political path. Slower-than-expected consumer price inflation in China also lifted sentiment.
The benchmark Hang Seng Index up over 2% in the morning session. Alibaba, Nio, and XPeng shares soared over 2%.
| share | movement |
|---|---|
| Alibaba group holding company GmbH. BABA | 2.52% |
| JD.com inc JD | 2.89% |
| Baidu Inc BIDU | 2.87% |
| Tencent Holdings GmbH. TCEHY | 1.39% |
| meituan MPNGF | 4.61% |
| Nio Inc NEVER | 5.07% |
| XPeng Inc XPEV | 3.45% |
| Li car inc LI | 1.77% |
Fed Chairman Jerome Powell said the central bank remains strongly committed to controlling inflation, adding that there is hope this can be achieved without the “very high social cost”. On Thursday, the European Central Bank raised interest rates by an unprecedented 75 basis points.
macro news: The Chinese city of Chengdu on Thursday extended the lockdown for the majority of its more than 21 million residents in a bid to contain a COVID-19 outbreak, while millions of people from other parts of the country have been told to avoid travel in the upcoming holidays, reported Reuters.
China’s consumer prices rose more slowly than expected in August on the back of heatwaves and COVID-19 outbreaks, while producer inflation fell to its lowest level since February 2021, according to the report Reuters citing official data. CPI rose 2.5% year-on-year compared to July’s 2.7% growth.
corporate news: Lenders of the Chinese developer Evergrande Group EGRNF appointed a bankruptcy trustee this week to seize its Hong Kong headquarters, he reported Reuters, citing sources. This comes at a time when the world’s most heavily indebted developer is struggling to emerge from its debt crisis.
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