The Hong Kong stock market was the strongest performer on Tuesday, rising nearly 4% as news of the controversial extradition bill that triggered months of protests would completely be withdrawn. The Hang Seng Index (HSI) hit its biggest one-day gain since November 2018, closing at 26,523 points. According to the reports of local media, a significant boost was observed in the afternoon trading, and it was confirmed that Carrie Lam, the Hong Kong leader would officially withdraw the bill. Lam suspended the bill in June in order to quell the protests since more than 1 million people took to the streets of Hong Kong, but it did not work.
Almost all components of the Hang Seng were rising. The real estate developers were the biggest gainers, who were hit by protests and the ongoing US-China trade war. New World Development Company Limited, Wharf Real Estate Investment Company Limited, and Sun Hung Kai Properties rose more than 9%. So far, Tuesday’s gains have caused the Hang Seng Index to rise 2.6% this year. The increase in the afternoon created a good day for the Hang Seng Index, which rose in early trading. After China’s Internet giant announced that it spent HK$36.4 million (US$4.6 million) for buying back shares on Tuesday, the Index heavyweight Tencent (TCEHY) rose 3.6%. The company spent around HK$190 million ($24 million) to repurchase shares for the last five sessions.
According to Mr. Zhonegsheng Zhong, the director of macroeconomic analysis at CEBM Group, in a statement accompanying the data wrote that China’s economy showed signs of significant recovery, especially in the employment sector last month. He pointed out that the US-China trade war still drags down the business. He also added that the China government is taking measures to promote the growth of the economy. The sentiment in the market was sour after the US market closed sharply on Tuesday. Investors are resuming new US and Chinese tariffs, which are effective from the weekend. Increasing concerns about the Brexit and its possible turmoil in the UK and European economies did not help.