Hang Seng Index Surge: Beijing's Economic Stimulus Ignites Bull Market

Hang Seng Index Rallies as Economic Measures Take Effect

Hong Kong stocks surged for the fourth day, reclaiming the 20,000 floor for the first time in over a year as a buying spree went into overdrive after Beijing injected fresh fuel into the Chinese economy. The Hang Seng Index jumped 1.8 per cent to 20,290.18 as of 9.45 am local time, the highest level since May 2023. The Tech Index jumped 2.5 per cent, while the Shanghai Composite Index climbed 0.6 per cent to a three-month high.

Major Contributors to Market Growth

• Alibaba Group Holding advanced 4.3 per cent to HK$102
• JD.com surged 6.6 per cent to HK$147.70
• Baidu rallied 3.7 per cent to HK$99.30
• New World Development surged 16 per cent to HK$9.50

The four-day winning streak in the city’s stock market is the largest since the Covid reopening rally in late 2022, taking the Hang Seng Index into bull-market territory with a 20 per cent gain from a recent trough.

President Xi Jinping has issued a fresh rallying cry in an unexpected Politburo meeting to help the private sector and mobilise officials across the nation to prioritise reviving the economy. This follows the People’s Bank of China’s surprise stimulus package earlier in the week, including a US$114 billion stock-buying facility, policy rate cuts, and reserve-ratio reductions.

“It’s clear that Beijing is pulling no punches,” said Stephen Innes, managing director at SPI Asset Management. “This cocktail of confidence keeps the bull market charging ahead.”

Other key Asian markets were broadly higher. Japan’s Nikkei 225 rallied 0.9 per cent, and Australia’s S&P/ASX 200 added 0.11 per cent, while South Korea’s Kospi weakened 0.1 per cent.