Hong Kong Stocks Surge 13% In Best Week Since 1998
Date
9/27/2024 3:22:44 PM
(MENAFN- The Rio Times) Hong Kong's stock market witnessed a historic surge last week, marking its best performance in over two decades.
The Hang Seng index skyrocketed by 13%, reclaiming the 20,000-point level and reaching 20,632.30 on Friday.
This impressive rally restored more than US$440 billion in market value to Hong Kong-listed Stocks . The week's extraordinary gains stemmed from Beijing's recent economic stimulus measures.
Chinese authorities unveiled a series of initiatives to boost the economy, including lowering key interest rates.
These actions reignited investor confidence in Chinese and Hong Kong stocks, leading to unprecedented trading volumes.
Friday saw a record-breaking HK$445 billion (US$57 billion) in transactions, the highest since data collection began in 1992.
The Tech Index jumped 5.8%, while the Shanghai Composite Index climbed 2.9% to a four-month high.
Major Chinese tech companies listed in Hong Kong experienced significant gains during this period.
Alibaba Group Holding advanced 4.9%, while JD surged 9.7%. Online travel agency Trip saw an impressive 12.6% rally.
New World Development also made headlines with a 21.6% jump following a management reshuffle. This week's performance stands out when compared to historical data.
The 13% weekly gain surpasses any seen since October 1998, during the aftermath of the Asian Financial Crisis.
It marks a significant turnaround for Hong Kong stocks, which had underperformed other Asian and U.S. markets for over a year.
The surge in Hong Kong stocks has had a ripple effect across Asian markets. The CSI 300 index, which tracks major Chinese corporations, rose 14.9% this week.
This increase represents its largest gain since November 2008, during the global financial crisis. Other Asian markets also benefited from China's stimulus measures.
Hong Kong Stocks Surge 13% in Best Week Since 1998
Japan's Nikkei and South Korea's KOSPI indices saw positive movements in response to the news. The broader impact of this rally has caught the attention of investors and analysts worldwide.
Market experts have offered varied perspectives on this unprecedented activity. Paul Smith, Citi's head of markets for Japan, Asia North and Australia, noted exceptional client activity.
He observed increased interest across Asian equities, particularly in mainland China and Hong Kong stocks. However, some analysts remain cautious about the long-term impact of this rally.
They cite ongoing challenges in China's property market and overall economic slowdown as potential concerns.
These factors may influence the sustainability of the current momentum in Hong Kong's stock market.
As Hong Kong's stock market celebrates this historic week, all eyes remain on its future performance. Investors and analysts alike are closely monitoring whether this momentum can be sustained.
The coming weeks will reveal if this rally marks a turning point or a temporary surge in Hong Kong's financial landscape.
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