Hong Kong Stocks Soar As Beijing Pledges Support

Hong Kong stocks soared on Wednesday after mainland authorities pledged much-needed support to beaten-down markets.

Xinhua News Agency said authorities would maintain capital market stability and adopt measures to handle risks for troubled property developers.

The news lit a fire under Hong Kong's Hang Seng Index, where mainland tech firms had been reeling from a sell-off this year.

The Hang Seng Index rocketed 9.1 percent, or 1,672 points, to close at 20,087.

The Shanghai Composite Index climbed 3.5 percent, or 106 points, to 3,170, while the Shenzhen Composite Index rose 3.6 percent, or 72 points, to 2086.

The government guidance was announced after a committee meeting under the State Council chaired by Vice Premier Liu He, Xinhua reported.

The meeting stressed the need to "effectively support the economy in the first quarter", adding that monetary policy should be proactive and new loans should grow appropriately.

In the real estate sector, authorities should also propose "effective response plans to prevent and defuse risks", the meeting found. (AFP)