Hong Kong Stocks Soar Following China's Announcement on Bank Loans for Stock Buy-Backs

Market Reaction to China's New Measures

Hong Kong stocks jumped by the most in two months after China announced its support for bank loans directed towards stock buy-backs and stake increases. The Hang Seng Index rose 2.2 percent to 18,639.35 as of 9:53 am local time, marking the biggest gain since July 12. Meanwhile, the Hang Seng Tech Index gained 2.1 percent, and the Shanghai Composite Index added 0.8 percent.

Top Performers in the Market

• China Merchants Bank saw an increase of 4.5 percent, reaching HK$32.35.
• JD.com advanced by 4.2 percent to HK$117.90.
• Notable gains were also recorded for Alibaba Group Holding with a 2.5 percent rise to HK$88.95, and Tencent Holdings increased by 0.7 percent to HK$390.60.

Government Officials Determine Financial Strategy

Pan Gongsheng, governor of the People's Bank of China, announced these market-boosting measures during a Beijing press conference. He indicated that China plans to lower the down payment ratio further and cut existing mortgage rates to support the property market. Wu Qing, chairman of the China Securities Regulatory Commission, and Li Yunze, chief of the National Financial Regulatory Administration, also contributed to this financial strategy.

Impact on Asian Markets

Other major Asian markets showed mixed results. Japan's Nikkei 225 climbed 1.3 percent, while both South Korea's Kospi and Australia's S&P/ASX 200 experienced a mild decline of 0.1 percent.