CHINESE property and financial companies led rally in Hong Kong stocks on Wednesday (Oct 2), as Beijing’s stimulus measures and easier home purchase rules continued to buoy sentiment.
The benchmark Hang Seng Index rose 6.2 per cent to 22,443.73 – the biggest one-day pct gain since November 2022, extending gains to the sixth straight session
Chinese H-shares surged 7.08 per cent to 8,041.27, Hang Seng Tech Index rose 8.53 per cent to 5,157.08, IT stocks gained 6.09 per cent and the Hang Seng index tracking energy shares added 4.41 per cent
The Hong Kong market reopened after the National Day holiday on Tuesday; mainland Chinese markets were shut for the week-long Golden Week holiday
“In China, the property situation seems to have stabilised, which may well act as a catalyst for stocks, many of which are currently very attractively priced,” AllianzGI said. “We would expect a more favourable environment in Q4 2024 for Chinese equity markets.”
Hang Seng Mainland Properties Index jumped 14.88 per cent to 1,694.65, with Yuexiu Property soaring 26.57 per cent, Longfor Group climbing 24.73 per cent, China Overseas Land surging 15.08 per cent and China Resources Land gaining 10.47 per cent
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Global traders prepared to bet on China again, in a major sentiment shift sparked by Beijing’s drive to reverse its economic slowdown and revive long-term interest in its stock markets, while Chinese investors rushed to open accounts to trade on fear of missing out on the epic rally
Hang Seng Composite Index tracking financial stocks added 5.69 per cent, with China Merchant Securities soaring 81.32 per cent, China Securities surging 47.96 per cent, GF Securities rising 33.58 per cent and Guotai Junan gaining 40.15 per cent
Around the region, MSCI’s Asia ex-Japan index was firmer by 1.39 per cent, while Japan’s Nikkei index dropped 2.18 per cent
Top gainers among H-shares were Longfor, up 24.73 per cent, followed by China Overseas Land and Meituan up 15.08 per cent and 14.65 per cent, respectively. REUTERS
