Hang Seng Index Rises as Chinese Stocks Rebound Following National Holiday

Chinese Stocks Rally and Hang Seng Index Climbs

Chinese stocks soared as the market opened on Tuesday after a week-long holiday to catch up with the frenzy in Hong Kong, the world’s best-performing market this year. The CSI 300 Index, which tracks the biggest mainland companies listed in Shanghai and Shenzhen, opened 10.8 per cent higher, the biggest opening on record. The Shanghai Composite Index rallied 10.1 per cent while the Shenzhen Composite Index surged 12.9 per cent.

Hang Seng Takes the Lead

The Hang Seng rose 9.3 per cent to a 32-month high since China’s markets went on holiday on October 1. The Nasdaq Golden Dragon China Index, which tracks 64 China-domiciled stocks including Alibaba Group Holding, Bilibili, and Xpeng, had risen 10.9 per cent since the start of China’s national day holiday.

Beijing's Stimulus Expectations

Beijing is now widely expected to keep the policy tonic going, as the country’s top economic planner National Development and Reform Commission (NDRC) is set to discuss a stimulus package and unveil a wide-ranging action plan in a key press conference on Tuesday morning.

Mixed Signals from Other Asian Markets

Other key Asian markets were mixed. Japan’s Nikkei 225 Index dropped 0.8 per cent, Australia’s S&P/ASX 200 Index eased 0.2 per cent, and South Korea’s Kospi weakened 1 per cent.