Stocks of Chinese companies reached a 5-week high after announcement that China’s trade war with US is now “on hold”
Beijing. May 22. Silkroadnews - Hong Kong stocks rose in all directions after the US Treasury Secretary Steven Mnuchin said that the US-China trade war was “on hold”, South China Morning Post reports.
The trade deal between China and the US suggests that China would buy more US goods and services, such as energy and agricultural goods, while the US would ease restrictions on the export of high-tech products.
Link Reals Estate Investment Trust rallied 2.15 per cent to HK$68.80. JP Morgan upgraded its target price to HK$77 from HK$67.60 because of the robust rent recovery of the company’s lease portfolio. Sun Hung Kai Properties added 0.71 per cent to HK$128.30.
Ping An Insurance (Group) edged up 0.13 per cent to HK$78.40, AIA Group gained 3.06 per cent to HK$74.20. Hong Kong Exchanges and Clearing advanced 1.16 per cent to HK$262.40.
AAC Technology was 4.67 per cent higher at HK$118.70, while Tencent Holdings eased 0.73 per cent to HK$408.
Health care stocks dropped after last week’s strong rally. Sino Biopharmaceutical slid 3.99 per cent to HK$18.28. Shanghai Pharmaceuticals Holdings, one of the nation’s largest drug makers and distributors, dropped 1.29 per cent to HK$23. The company said it will acquire Takeda AG’s China-based Techpool business for US$144 million. Shanghai Pharma will increase its shareholding in Techpool to 67.14 per cent from 40.80 per cent, giving it absolute control of Techpool, a human urine protein bio-pharmaceutical, the report reads.
