Hong Kong stocks are surging after leader Carrie Lam looks set to withdraw the extradition bill that sparked months of protest
- Hong Kong's stocks rallied on close as Carrie Lam, chief executive of Hong Kong, is set to remove the controversial extradition bill.
- Thousands of protesters marched against the bill for months, as the central Chinese government wanted to allow Hong Kong's citizens to be tried in mainland China.
- The Hang Seng had taken a pummeling as traders had been cautious during the protests, with the market falling more than 10% since the start of the protests in July.
- On Wednesday close, the Hang Seng was up 3.8%. A number of luxury real estate stocks skyrocketed by more than 10% on the news.
- View Markets Insider's homepage for more stories.
Hong Kong's Hang Seng Index surged Wednesday after Carrie Lam, Hong Kong chief executive is set to withdraw the controversial extradition bill which sparked months of violent protests.
The Hang Seng closed up 3.8% as luxury and real estate stocks jumped on the news.
Hong Kong has seen huge protests in recent months leading to bloody clashes with police on the streets and protestors.
Protestors had been fighting a bill introduced by the central Chinese government, the extradition bill, which would have allowed Hong Kong's residents to be tried for crimes in mainland China.
Sources told the South China Morning Post, owned by Alibaba, reported that Lam was set to remove the bill 4 pm local time (4 am EST.)
Luxury real estate stocks benefitted hugely from the withdrawal, as the New World Development Company rose 11.1% and Wharf Real Estate Investment Company jumped 11.5%, as the top 30 major components rallied.
The Hang Seng has taken a huge hit over the past two months falling by more than 10% since the start of the protests including a 5.5% drop in a single day as traders' nerves worsened on the protests.
However, the removal of the bill looks like it will signal a bullish market in the island for investors.
Lam had earlier suspended the bill, saying that it was "dead" however it had not been withdrawn formally, as protests continued.
Watch the Hang Seng trade live here.