American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Chinese stocks lead a bullish charge in Hong Kong after major stimulus

by admin October 2, 2024
October 2, 2024
Chinese stocks lead a bullish charge in Hong Kong after major stimulus

Chinese stocks listed in Hong Kong surged dramatically, marking their largest rally in almost two years, as traders returned from a national holiday.

Fueled by stimulus-driven optimism, the Hang Seng China Enterprises Index shot up by as much as 8.4%, extending a remarkable 13-day winning streak.

Leading the gains were property developers, with a sectoral index rising by an unprecedented 31% in intraday trading, while a gauge tracking brokerage shares—a key indicator of risk appetite—soared 28%.

Meanwhile, mainland Chinese markets remained closed for a week-long holiday until October 8.

Government stimulus fuels investor confidence

This ongoing rally is largely credited to renewed confidence in China’s economy following the government’s introduction of significant stimulus measures last week.

Among the steps taken were interest rate cuts, an increase in liquidity for banks, and various forms of financial support for stock markets.

Additionally, home-buying restrictions in four major cities were relaxed, and the central bank reduced mortgage rates to stimulate the property sector.

Investment strategist Billy Leung from Global X Management in Sydney noted that these developments are pushing investors back into Chinese assets.

Bloomberg report quoted Leung as saying:

What we’re witnessing is a fundamental shift in investor sentiment. Hedge funds and mutual funds that had been underweight in Chinese assets are now increasing their exposure.

He also emphasized the broader market reversal in key sectors such as copper and Asia-Pacific currencies, driven by China’s economic recovery.

Valuations make Chinese stocks attractive to global investors

The appeal of Chinese stocks is further amplified by their relatively low valuations after a prolonged three-year downturn.

Even with the recent upswing, the Hang Seng China Enterprises Index is still trading at less than nine times its projected earnings over the next 12 months.

By comparison, the S&P 500 is trading at more than double that, according to Bloomberg data.

Signaling growing interest, hedge funds have been pouring into Chinese equities at an unprecedented pace.

Billionaire investor David Tepper has reportedly increased his exposure to China, while BlackRock Inc., the world’s largest asset manager, has also taken an overweight position in Chinese stocks.

Other major players, including US-based Mount Lucas Management, Singapore’s GAO Capital, and South Korea’s Timefolio Asset Management, are also making bullish moves on Chinese large-cap stocks and exchange-traded funds (ETFs).

China regains its position in emerging market indices

China’s rapid rally has also led to the recovery of its weighting in key emerging-market indices, a position it had lost over the last 10 months.

Data compiled by Bloomberg shows that by the end of September, China’s share of MSCI Inc.’s benchmark for developing-nation equities had risen to 27.8%, the highest level since November 2023.

In a client note, Sylvia Sheng, global multi-asset strategist at J.P. Morgan Asset Management, echoed this positive sentiment.

“We are becoming more optimistic about China’s economic outlook,” Sheng wrote.

She pointed to recent signals from Chinese authorities, including their increasing focus on supporting economic growth and stabilizing the troubled property sector, as pivotal in lifting market sentiment and sustaining upward momentum in equities.

The post Chinese stocks lead a bullish charge in Hong Kong after major stimulus appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Ireland set to invest Apple’s €14bn tax windfall in critical infrastructure
next post
Xiaomi stock price has entered beast mode: more upside left?

Related Posts

These two stocks reporting earnings soon typically beat...

October 20, 2024

Here’s a Trump trade that hasn’t played out...

January 27, 2025

Bybit CEO claims crypto liquidations far exceed reported...

February 4, 2025

Why closing the Strait of Hormuz is a...

June 23, 2025

Home sale commissions are getting a shake-up this...

August 19, 2024

Here’s why Block (SQ) stock could rise 20%...

November 2, 2024

Are DIIs becoming the new owners of Indian...

October 30, 2024

‘Winning the chip race’: what US semiconductor industry...

January 15, 2025

US fraud case against Gautam Adani: Will the...

December 16, 2024

Nebius Group stock price eyes a 45% surge...

May 19, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved