China's Indexes Extended Stimulus Rally to Third Day Amid Hopes of Additional Measures

Li Chen
26 Sep, 2024
Hong Kong

Benchmark indexes in mainland China and Hong Kong extended gains for the third consecutive day after Beijing rolled out stimulus measures. 

The Hang Seng index jumped 2.7% and the CSI 300 index advanced 2.3%, and the benchmark indexes extended three-day gains to over 7%. 

The wide-ranging stimulus measures revived market confidence in Beijing's leadership in the hopes that the regulators and policymakers are finally serious about reviving economic growth and tackling multi-year property market malaise. 

Investors stepped up to buy tech- and consumer-focused stocks amid expectations that the Politburo is likely to approve injecting as much as one trillion yuan into state-controlled banks. 

Despite the wide-ranging monetary policy measures released by the People's Bank of China, caution prevailed in stock trading amid worries of weak consumer sentiment and persistent weakness in the residential property market. 

 

China Stock Movers 

The Hang Seng index soared 2.7% to 19,641.05, and the mainland-focused CSI 300 index jumped 2.3% to 3,478.54. 

Tech stocks led gainers in Hong Kong after investors stepped up to increase exposure to high-growth and riskier stocks. 

Tencent Holdings jumped 4% to $421.60, Alibaba Group advanced 6.5% to HK $97.25, and JD.com soared 8.2% to HK $136.10. 

China Vanke added 13.4% to HK $5.34, China Resources Land added 11.9% to HK $24.45, and Longfor Group jumped 10.2% to HK $10.34. 

New World Development was halted at HK$8.19, and the company's chief executive, Adrian Cheng, is set to step down ahead of the company's releasing its annual financial results later in the day. 

The residential property developer is expected to announce losses totaling as much as HK $20 billion or $2.5 billion, reflecting a sharp decline in property valuations. 

Hong Kong-based property developers were in focus after New World Development news. 

CK Asset Holdings dropped as much as 1.5% to HK $32.35 before recovering to trade higher by 0.2% to HK $32.80. 

Sun Hung Kai Properties edged up 0.2% to HK $82.95 and rebounded from earlier losses of as much as 1.3%.