Hong Kong stocks rise as Beijing proposes steps to boost state-backed firms’ value

The Hang Seng Index gained 0.7 per cent to 19,830.42 at 11.30am local time on Wednesday. The Hang Seng Tech Index added 1.5 per cent. On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index strengthened 0.7 per cent.

The gains were led by mainland Chinese carmakers. Li Auto jumped 3.7 per cent to HK$88.40 and Geely Auto added 2.4 per cent to HK$15.42. On-demand delivery giant Meituan advanced 0.9 per cent to HK$160.10 and smartphone maker Xiaomi added 2.3 per cent to HK$30.65.

The State-owned Assets Supervision and Administration Commission, China’s state assets watchdog, late on Tuesday issued guidelines aimed at helping state-owned enterprises unlock market value of their listed units. The guidelines also included proposals on mergers and acquisitions, market-oriented reforms, information disclosure and stock buy-backs.

China Securities Depository and Clearing, which is responsible for all securities depository and clearing services for the Shanghai and Shenzhen stock exchanges, said in a statement late on Tuesday that it would reduce the service fee charge for dividend payout to 0.05 per cent from 0.1 per cent and capped it at 1.5 million yuan (US$206,000). The measure come into effect from January 1.

Car parts manufacturer Jiangsu Lintex New Materials Technology made its debut in Beijing, jumping 230 per cent to 65.53 yuan.