Recently, the stocks in Hong Kong largely clung on the gains following reporting a 4% pitch a day earlier, on the news that the city’s contentious extradition bill that has sparked protests will be scrapped. After the strong gains, the Hang Seng index closed below the flat line at 26,515.53. Carrie Lam—Hong Kong Chief Executive—fully removed a disputable extradition bill in Hong Kong that sparked protests for the past few months. It was one of the five demands that activists had been fighting for. One financier described the surge as the “technical recoil.” Dickie Wong—Executive Director at Kingston Securities—said to CNBC, “I feel that the Hang Seng index would find an extremely solid resistance at 27,000 points. In terms of the regional economy, it is still inactive so I don’t truly see an actual rebound in the short term.”
Michael Yoshikami—CEO and Founder of Destination Wealth Management—told CNBC that the “dent has been done. While I believe this undoubtedly seems to be an optimistic step ahead for some sort of declaration, I think the crash is going to be experienced in Hong Kong and will be something that we are going to be encountering with for a considerable period of time or months for sure.” In China, the shares reported the gains: the Shanghai Composite advanced by 0.96% to around 2,985.86, whilst the Shenzhen Component surged by 0.86% to settle at 9,783.50. The Shenzhen Composite recovered by 0.93% to settle around 1,651.63. In Japan, the Nikkei 225 advanced by 2.12% to 21,085.94, whereas the Topix advanced by 1.84%.
On a related note, recently, China opted for a low-key reporting of Hong Kong extradition bill removal. Observers also pointed out that none of the central administrative agencies with accountability for Hong Kong—the foreign ministry commissioner’s office, the Hong Kong and Macau Affairs Office, and the central administration’s liaison office in Hong Kong—have made remarks since Lam’s announcement.