Stocks listed in China and Hong Kong rose on Wednesday after China’s government pledged to support ailing markets.
The Hang Seng HSI, +8.46%, rose 9% in afternoon trade as state-run Xinhua news agency said the government would take a series of pro-market moves.
The Shanghai Composite SHCOMP rose +3.48%, up 3.5%.
China’s Financial Stability and Development Committee called for monetary policy to support the economy and that the authorities should introduce prudent measures that have a contractionary effect.
The Chinese government is also working with US authorities to support overseas listings, as the Securities and Exchange Commission last week identified Chinese companies that could be delisted over auditor access issues.
JD.com 9618, +32.55% JD, +7.08% up 34%, Alibaba 9988, +24.77% BABA, -1.29% up 24% and NetEase 9999, +24.04% NTES, +3.79%, up 23% in trade in Hong Kong.
The committee also said it will keep Hong Kong’s financial markets stable while improving regulatory communication and coordination with Hong Kong regulators.
Even with Wednesday’s surge, the Hong Kong index is down 14% this year compared to the 11% decline in the S&P 500 SPX (+2.14%)..
The comments did not address another factor weighing on Chinese stocks, namely the possibility of US sanctions if the country supplies weapons to Russia.
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