Hong Kong stocks recover from selloff loss to close at 2.3%

A late night rally drove stocks to their largest daily gain since May 2016.

Bloomberg reports that Hong Kong stocks are gradually recovering some of their losses from last week’s selloff which left the markets reeling from a $475m loss after the Hang Seng Index closed 2.3% with fresh capital coming in at the eleventh hour or the last half hour of trading.

The late night rally enabled the equity benchmark to post its largest daily gain since May 2016.

The gains were boosted as Goldman Sachs raised its price target on Hang Seng Bank Ltd. whilst companies from the Mainland also extended their run for the second day led by China Construction Bank Corp. and Industrial & Commercial Bank of China Ltd. 

Banks were also buoyed by future expectations that their net interest margins will widen this year as lending rates are poised to grow faster than deposit rates, said Core-Pacific Yamaichi HK head of research Castor Pang. 

Here’s more from Bloomberg: