Hong Kong Stock Market and Chinese Stocks Soar with Fiscal Stimulus Boost
Surge in the Hong Kong Stock Market
The Hong Kong Stock Market has embarked on a remarkable rally, reflecting the impact of China's ongoing stimulus frenzy. As of now, the Hang Seng Index has surged 3.4% to close at 21,846.83, marking the highest level since February 2023.
Performance of Chinese Stocks
- Meituan soared 10% to HK$189.50.
- JD.com jumped 8.3% to HK$180.90.
- Baidu rallied 6.4% to HK$112.40.
- Li Auto advanced 8.8% to HK$117.60.
- BYD rose 4% to HK$295.20.
This surge corresponds with China's increasing fiscal stimulus packages, which have restored over US$770 billion in market valuation to local stocks.
Global Market Reactions
BlackRock has indicated that it is modestly overweight on Chinese stocks, signaling that more stimulus measures could further stimulate the market. Concurrently, other Asian markets have reacted negatively, with the Nikkei 225 Index retracting 1.9% and other indices following suit due to escalating tensions in the region.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.