Hong Kong stocks rallied 3.9% to 26,523.23 Wednesday after news broke that Hong Kong Chief Executive Carrie Lam would withdraw the extradition bill, reported Caixin.
Lam made the announcement in a prerecorded televised address after markets closed. “The government will formally withdraw the bill in order to fully eliminate the public’s doubts,” Lam said. At the same time, the latest reading of the IHS Markit Hong Kong purchasing managers’ index (PMI) sank to 40.8 in August from 43.8 in the previous month, the lowest reading in over a decade, reflecting concerns that Hong Kong was on the verge of recession.