Hong Kong’s battered stock market surged Wednesday on a South China Morning News report that chief executive Carrie Lam plans to formally withdraw the controversial extradition bill that has hammered local businesses and raised questions about the future of the city as an international financial centre.

The Hang Seng Index closed up 3.9 per cent, at 26,523.23, after shooting up as much as 4.35 per cent. That was its biggest daily gain in 10 months. On November 2, the HSI gained 4.2 per cent, or 1,070.35 points.

Luxury retailers, property heavyweights and MTR were among big winners, after seeing their shares hammered as the protests that started June 9 steered away local shoppers and mainland tourists.

MTR, the owner and operator of the city’s subway system, had seen its shares plunge 20 per cent over six weeks as clashes between protesters and police ended with tear gas fired and arrests. It closed up 6.4 per cent to HK$47.35.

Cathay Pacific, the city’s flag carrier that became caught up in the protest storm, rose 7.2 per cent to close at HK$10.7.

Wharf Real Estate Investment soared by 12.1 per cent to HK$46.30.

New World Development jumped 10 per cent to HK$10.60. Sun Hung Kai Properties closed up 9.8 per cent at HK$118.5. Sino Land jumped 7.8 per cent HK$11.64.

Retailers and the consumer sector were also big gainers.

Sa Sa International soared by 17.2 per cent to HK$1.90. Chow Tai Fook shot up 9.7 per cent up to HK$9.74.