Hong Kong Equities Soar on China Stimulus; Property, Financial Stocks Lead Rally

Reuters
2024-10-02

HONG KONG, Oct 2 (Reuters) - Chinese property and financial companies led rally in Hong Kong stocks on Wednesday, as Beijing's stimulus measures and easier home purchase rules continued to buoy sentiment.

The benchmark Hang Seng Index rose 6.2% 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% to 8,041.27, Hang Seng Tech Index rose 8.53% to 5,157.08, IT stocks gained 6.09% and the Hang Seng index tracking energy shares added 4.41%.

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% to 1,694.65, with Yuexiu Property soaring 26.57%, Longfor Group climbing 24.73%, China Overseas Land surging 15.08% and China Resources Land gaining 10.47%.

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%, with China Merchant Securities soaring 81.32%, China Securities surging 47.96%, GF Securities rising 33.58% and Guotai Junan gaining 40.15%

Around the region, MSCI's Asia ex-Japan index was firmer by 1.39%, while Japan's Nikkei index dropped 2.18%.

Top gainers among H-shares were Longfor, up 24.73%, followed by China Overseas Land and Meituan up 15.08% and 14.65%, respectively.

China & Hong Kong stocks make a comeback.

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