Bloomberg - - Beaten down Chinese shares from property developers to tech giants and casinos advanced on Thursday amid hopes that China Evergrande Group is making progress in dealing with payment deadlines.
The Hang Seng property index gained as much as 5.2% while gauges of Macau casino stocks and technical companies has climbed more than 3%. Evergrande surged as much 32%, the most in more than a decade, before paring its increase to 11% at 10: 53 a.m. in Hong Kong
Investors are closing watching an Evergrande bonds interest payment due Thursday after the company said one day earlier if it had resolved a payment for an onshore note. Meanwhile, Chinese authorities have begun laying the foundations for a debt restructuring, which would greatly reduce the risk of contagion from an uncontrolled collapse of the developers.
The markets are currently pricing in Evergrande s debt crisis is likely to be ring-fenced within the property sector and not spill over to the wider financial system, said Kelvin Wong, an analyst at CMC Markets Singapore Pte.
Liquidity injections by Hong Kong central bank coupled with the resume of Stock Connect Program have allowed mainland investors to buy Hong Kong shares in search of deep discounts, which is also lifting markets, said Bloomberg Intelligence analyst Marvin Chen.
China high yield dollar bonds, dominated by the property sector, also climbed to 30 cents on the dollar on Thursday morning, according to credit traders.
As soon as November, U.S. shares increased their exposure to global exchange rates which flowed into Asian equities.
The jump in gaming shares was led by Sands China Ltd. and Wynn Macau Ltd. A record breaking third party hit last week that followed proposed revisions to local laws wiped out nearly $20 billion in market value.
The hang Seng Tech Index, as Meituan climbed as much as 7.5% while Tencent Holdings gained 4.4%.
Holidays during the week in Asia have contributed to volatility. Hong Kong s real estate markets were closed Monday and Tuesday while Hong Kong was closed on Wednesday.
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