Hong Kong Indexes Surged 2% After Industrial Profits Rebounded In the First Half

Li Chen
29 Jul, 2024
Hong Kong

Benchmark indexes in Hong Kong advanced after the total profit of industrial enterprises rose in the first half of this year. 

The Hang Seng indexes jumped as much as 2%, but the CSI 300 index declined as two indexes diverged in Monday's trading. 

Total profits of industrial companies in the first half rose 3.5% from a 0.1% increase in the first five months to May a year ago, the National Bureau of Statistics reported Saturday. 

Investors are also looking forward to an announcement after the Politburo meeting in Beijing, which is likely to offer more policy support to meet the annual growth target rate of 5%. 

Last week, the People's Bank of China lowered its policy rate for ultra-long-term bonds and announced its plan to purchase 300 billion yuan, or about $41 billion, of bonds. 

Despite the market surge in Monday's trading, mood was subdued in Shanghai and Shenzhen trading on the worries ahead of the start of the earnings season this week. 

Market sentiment was also cautious ahead of monetary policy announcements from major central banks in the U.S., the UK, and Japan. 

The U.S. Federal Reserve is expected to keep interest rates steady for the eighth time in a row, and policymakers may provide clarity on the timing and amount of rate cuts later in the year. 

Most market participants are anticipating the Fed to lower rates by 25 basis points as early as September. 

 

China Stock Movers

The Hang Seng index increased 2% to 17,352.37, and the CSI 300 index decreased 0.4% to 3,397.37. 

Tech stocks led the gainers in Monday's trading, and Alibaba Group advanced 5.4% to HK $77.05, Tencent Holdings increased 1.8% to HK $360.40, and Baidu gained 1.7% to HK $87.0. 

Financial services stocks advanced after banks and insurance stocks participated in the market rally. 

China Merchants Bank added 1.4% to HK $32.40, Industrial and Commercial Bank advanced 2.1% to HK $4.40, HSBC gained 1.3% to HK $67.10, and AIA Group jumped 1.9% to $52.70.