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Hong Kong stocks rally for 6th day as stimulus fuels optimism

XINHUA

發布於 10月03日01:08 • Lu Yun,Lin Yingnan,Wu Xiaochu,Chen Duo,Wang Shen,Lu Binghui,Li Gang
Photo taken on July 31, 2021 shows the statues on the square of Hong Kong Exchanges and Clearing Limited (HKEX) in south China's Hong Kong. (Xinhua/Wu Xiaochu)
Photo taken on July 31, 2021 shows the statues on the square of Hong Kong Exchanges and Clearing Limited (HKEX) in south China's Hong Kong. (Xinhua/Wu Xiaochu)

Hong Kong stock market registered a long winning streak with the benchmark Hang Seng Index jumping for the sixth straight day on Wednesday amid optimism over China's economy.

HONG KONG, Oct. 3 (Xinhua) -- Shares listed in Hong Kong extended a historic rally on Wednesday with the benchmark Hang Seng Index jumping for the sixth straight day on the back of stimulus policies that boosted optimism over China's economy.

The benchmark Hang Seng Index surged 6.2 percent to end at 22,443.73 points, almost hitting a previous high of over 22,700 points in January 2023, with turnover surpassing 434 billion Hong Kong dollars (55.9 billion U.S. dollars).

Over the last six trading days, the index gained almost 23 percent, making Hong Kong among the top-performing markets globally.

Fireworks celebrating the 75th anniversary of the founding of the People's Republic of China illuminate the sky over Victoria Harbour in Hong Kong, south China, Oct. 1, 2024. (Xinhua/Chen Duo)
Fireworks celebrating the 75th anniversary of the founding of the People's Republic of China illuminate the sky over Victoria Harbour in Hong Kong, south China, Oct. 1, 2024. (Xinhua/Chen Duo)

The Hong Kong Hang Seng Tech Index, representing 30 largest technology companies listed in the stock market, soared 8.53 percent to end at 5,157.08 points, while the Hang Seng China Enterprises Index climbed as much as 7.08 percent.

The broad-based gains were fueled by a package of stimulus measures announced last week by China's financial regulators, which analysts expected would shore up the growth of the world's second-largest economy.

The country's central bank, top securities regulator and financial regulator have announced a raft of monetary stimulus, property market support and capital market strengthening measures to foster the country's high-quality economic development.

The policy package was well-received by investors, with the benchmark Shanghai Composite Index jumping 8 percent to stand above 3,300 points on Monday, the biggest single-day gain since 2008.

Fishing vessels take part in a cruise held by the Hong Kong Fishermen Consortium to celebrate the 27th anniversary of Hong Kong's return to the motherland at Victoria Harbour in Hong Kong, south China, July 1, 2024. (Xinhua/Wang Shen)
Fishing vessels take part in a cruise held by the Hong Kong Fishermen Consortium to celebrate the 27th anniversary of Hong Kong's return to the motherland at Victoria Harbour in Hong Kong, south China, July 1, 2024. (Xinhua/Wang Shen)

Lu Ting, chief China economist at Nomura, noted at a forum over the weekend that global investors have shown extensive interest in China over the past week after the policy announcement and the response is "very positive and enthusiastic."

Markets on the Chinese mainland remain shut until Oct. 8 for a week-long National Day holiday.

Wednesday's gain in Hong Kong followed substantial interest rate cuts announced by China's central bank and the easing of housing restrictions in some of the country's largest cities, which particularly boosted the real estate sector.

Property developer Sunac China Holdings Limited surged 75.57 percent, while Shimao Property Holdings Limited soared 153.15 percent.

Photo shows a view by the Victoria Harbor in Hong Kong, south China, June 11, 2020. (Xinhua/Li Gang)
Photo shows a view by the Victoria Harbor in Hong Kong, south China, June 11, 2020. (Xinhua/Li Gang)

Belle Liang, chief investment officer of Hang Seng Private Banking, noted that the heavy turnover signaled that institutional investors are returning to the Hong Kong market, and the upward momentum is likely to continue.

Hong Hao, chief economist at Grow Investment Group, expected that more policy support will be rolled out in the fourth quarter to shore up China's economy.

Hong Kong's stock market has bottomed out, he said, while cautioning that the market still needs time to digest the overbought amid the sharp rise. ■

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