Hong Kong stocks rebounded on Thursday after fears of Middle East Respiratory Syndrome (MERS) spreading to the city eased, but shares were still trading at a 40 percent discount to their mainland-listed peers, the highest level seen in six years. The Hang Seng index rose 0.8 percent, to 26,907.85, while the China Enterprises Index gained 0.9 percent, to 13,743.25 points.
The market was knocked in panic selling on Wednesday afternoon on rumours of a possible MERS case in Hong Kong, but sentiment soothed after controller of the Center for Health Protection Leung Ting-hung told a press briefing on Thursday morning that no confirmed case of MERS has been found in the city so far. "The panic is gone, so we see the market rebound today," said Alex Kwok, analyst at China Investment Securities (HK), adding stocks also got support from buoyant US and European markets.
However, buying interest was contained by an anticipated US rate hike later this year, and a politically sensitive local vote next week. "I don't see any good news for the market," Kwok said. Among the most actively traded stocks on Hong Kong's main board were CCT Land, up 7.3 percent to HK$0.04 MI Holdings, up 18.2 percent to HK$1.04 and Ali Pictures , down 6.3 percent to HK$3.00.