Hang Seng Index Extends to Bull Territory Amid Hopes of Supportive Measures

Li Chen
03 May, 2024
Hong Kong

Market indexes in Hong Kong advanced and inched further into bull territory as investors searched for bargains in tech and financial services stocks. 

The Hang Seng index increased 1.1% to 18,413.79, and the Hang Seng Tech index jumped 2% after Apple announced a $100 billion stock repurchase plan. 

Financial markets in mainland China are closed for a holiday, and markets are scheduled to reopen on Monday after the end of the Golden Week holidays. 

The Hang Seng index is up more than 20% from its low reached on January 22, amid a slew of positive earnings and regulatory measures to revive market sentiment. 

Market sentiment was further bolstered after China's top policymakers announced additional measures in a meeting held on April 30. 

Policymakers are looking for banks to lower reserve ratios, encourage the People's Bank of China to lower rates, and provide additional financing to top property developers. 

Policymakers are seeking to take steps that support real economic activities, such as increasing lending to small and medium businesses, which could lead to more job creation. 

The Hang Seng index extended weekly gains to 6% and extended this year's increase to close to 10%, leading other large financial markets. 

Tech stocks extended gains following the rally in tech stocks in overnight trading in New York. 

Tencent Holdings gained 1% to HK$363.20, Alibaba Group advanced 3.5% to HK$78.75, and Meituan jumped 0.8% to HK$119.30. 

Banks and financial services stocks traded mixed but extended this week's gains.  

Bank of China decreased 0.3% to HK$119.30, China Construction Bank added 0.8% to HK$5.17, and HSBC Bank was unchanged at HK$69.25. 

Chinese automakers generally traded higher, and electric vehicle makers inched higher after reporting mixed vehicle sales in April two days ago. 

BYD added 0.6% to HK$226.40, Li Auto jumped 2.7% to $110.50, Xpeng increased 4.2% to HK$35.60, and Geely Automotive added 1.1% to HK$9.91.