Tech and Property Stocks Power Hong Kong Stock Rally for the Third Consecutive Week

Li Chen
04 Oct, 2024
Hong Kong

Hong Kong stocks advanced, overcoming morning jitters as investors poured more money into large-cap stocks. 

The Hang Seng index rebounded from the morning losses of nearly 2% as investors increased exposure to tech stocks, banks, property developers, and oil explorers. 

Market indexes in Hong Kong advanced as new domestic and international fund flows drove demand for large-cap stocks. 

Investors bid up stocks for the third consecutive week in a row in the hopes that the Chinese authorities are preparing for a big and bold fiscal stimulus package targeting the residential property market. 

The Hang Seng index is set to increase 9% in the current week, following a 13% increase in the previous week, the sharpest two consecutive weeks of gains in 26 years.

Financial markets in China have rebounded a whopping 23% since the announcement of monetary stimulus measures on September 24; however, the real economy continues to lag market expectations amid ongoing weakness in manufacturing. 

Moreover, investor enthusiasm may be misplaced, as the stock market rally petered out following the expectations of an economic rebound after the ending of coronavirus restrictions at the end of January 2023. 

 

China Stock Movers 

The Hang Seng Index increased 1.9% to 22,529.97, and financial markets in mainland China are set to resume trading next Tuesday. 

Alibaba Group jumped 3.2% to HK $113.50, Tencent Holdings advanced 2.1% to HK $476.0, Meituan jumped 3.2% to HK $212.0, and Baidu Inc. added 1.1% to HK $110.10. 

Longfor Group added 1.4% to HK $17.22, China Vanke decreased 5.2% to HK $11.24, China Resources Land advanced 1.5% to HK $30.20, and Sun Hung Kai Properties fell 0.8% to HK $89.30. 

Bank of China added 0.5% to HK $3.83, China Merchants Bank gained 0.4% to HK $45.55, and HSBC was unchanged at HK $69.40. 

PetroChina advanced 3% to HK $6.74, CNOOC added 2.2% to HK $21.40, China Petroleum and Chemical gained 2.2% to HK $5.31, and China Shenhua increased 2.7% to HK $36.35.