Hong Kong shares are likely to continue to rebound next week, on expectation of a stronger Wall Street and measures from China to revive its bourses ahead of the Beijing Olympics, dealers said. For the week ending July 11, the benchmark Hang Seng Index closed up 760.73 points at 22,184.55, the first time it has risen above the 22,000-point level since June 30.
"I believe that the Dow Jones index has dived bottom or is near bottom. Also, I do not think China wants to kill the market ahead of the Olympics," Peter Lai, analyst at DBS Vickers, told AFP.
Lai believes the index will rise to 23,000 next week. He said the trend would continue until it reaches the range of 24,500-25,000 points just before the Games in August. But the market will also be affected by the home sales and retails statistics to be released in the US next week, he said.
ICEA Securities Asia strategist Ernie Hon told Dow Jones Newswires that the index could head toward 23,000 points as investors are returning to the market. He said the rebound will likely continue "on expectation of the central government's intention to create a good atmosphere ahead of the Olympic Games." But other analysts warned it could only be a technical rebound. "If there are no positive leads, current gains may not last for long," said Jackson Wong, an investment manager at Tanrich Securities.