Hong Kong Stocks Surge Into a Bull Market in Win for Government

  • Hang Seng Index has best three-day advance in five years
  • Gains come after shock imposition of security legislation

Exchange Square, Hong Kong. 

Photographer: Lam Yik/Bloomberg
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Hong Kong’s rallying stock market is defying predictions of the death of the city in the wake of a new security law.

The Hang Seng Index jumped 7.8% in the three days after the law was imposed on July 1, its biggest rally since April 2015, and entered a bull market on Monday. The advance was led by mainland Chinese firms listed locally, with Geely Automobile Holdings Ltd. and China Life Insurance Co. jumping more than 29%, but Hong Kong firms have also seen sharp gains. The benchmark retreated 1.4% Tuesday, with volume more than two times the three-month full-day average.