Hong Kong Stocks Greet New Law With Gains, Backed by Mainland

July 3, 2020

BY Alexander Kalis

By Bloomberg

Stocks in Hong Kong rose on their first trading day since new national security laws were imposed on the city, amid signs mainland Chinese buying was behind some of the gains.

The positive reaction in stocks divided analysts and traders. Some said the gains reflected investor expectation that the legislation will deter protesters, which could help bring stability to the city’s streets and in turn encourage consumption.

Others pointed to the guiding hand of the state, citing the Communist Party’s history of ensuring market stability around key anniversaries and politically sensitive events.

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