Hong Kong: Shares rise as banking contagion fears ease; China stocks fall

HONG Kong stocks rose on Tuesday (Mar 28), as investor fears of deeper banking stress were eased after failed Silicon Valley Bank secured a buyer. Chinese shares, however, were dragged lower by information technology companies.

Hong Kong’s benchmark Hang Seng Index climbed 1.1 per cent, and the China Enterprises Index added 1.2 per cent.

China’s blue-chip CSI300 Index closed down 0.3 per cent, while the Shanghai Composite Index lost 0.2 per cent.

Regional US lender First Citizens BancShares scooped up the assets of failed peer Silicon Valley Bank on Monday, allaying investor fears of deeper banking sector stress and prompting a rally in bank shares, while global stocks also rose.

Additionally, the Federal Reserve’s top regulatory official plans to tell Congress that regulators are committed to ensuring all US bank deposits are safe.

Financial shares traded in Hong Kong rose 1.4 per cent, with HSBC Holdings and AIA Group up 1.9 per cent and 1.6 per cent, respectively.

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Hong Kong tech stocks climbed 0.9 per cent, with Tencent up 4.2 per cent.

China’s cyberspace regulator vowed on Tuesday to clamp down on malicious online comments that damage the reputation of businesses and entrepreneurs, amid an official drive to shore up the private sector and spur economic growth.

China’s Premier Li Qiang told foreign business executives that the country will open up further.

“Chinese leaders are attempting to shore up foreign investors’ confidence in China after the years of the closed-door policy during the pandemic and the trend of de-globalization,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank.

Premier Li also said China will maintain a certain level of economic expansion as it accelerates a transition towards higher quality growth, Chinese state media reported.

Shares in computer, communications equipment and media slumped between 1.6 per cent and 3 per cent, after each of them jumped more than 30 per cent this year amid a frenzy fuelled by the revolutionary computing technology ChatGPT.

RongSheng Petrochemical Co rose 10 per cent after Saudi Aramco signed agreements to acquire 10 per cent of the Chinese refining giant. CSI Energy Index was up 0.6 per cent. REUTERS