Hong Kong stock market experiences significant surge with the Hang Seng Index up more than 6% and the China Enterprises Index up 4%. Various Chinese property stocks also saw a substantial rise, with some increasing over 20%.
On Tuesday, the Hong Kong stock market opened with a bang as major stock indexes skyrocketed. The Hang Seng Index rose by 4%, the China Enterprises Index rose by more than 5%, and the Hang Seng Technology Index rose by over 6%. The increase in turnover reached about 50 billion, with the turnover of the Hang Seng Index reaching 142.106 billion, compared to the previous trading day’s 93.503 billion. Southbound funds experienced a net outflow of 3.435 billion yuan, with Beishui selling off a large amount.
The market close saw the Hang Seng Index up 4.1% at 19434.40 points, reaching 19510.5 points before the deadline. The Hang Seng Technology Index rose by 6.04% to 4257.58 points, while the China Enterprises Index increased by 5.31% to 6604.20 points.
Chinese property stocks experienced a surge, with Longfor Group rising 25%, Seazen Development up 22%, KWG Group increasing by 28%, Country Garden up 18%, Logan Group rising 17%, China Resources Land increasing by 10%, Vanke up 12%, and Sunac China increasing by 17%.
Property management stocks also saw a significant boost, with Sunac Services rising 14%, Country Garden Services up 26%, and Poly Property increasing by 8%.
The mainland insurance stocks rebounded strongly, with Ping An up 7%, China Life Insurance rising by 8%, China Pacific Insurance increasing by 6%, China Property Insurance up 6%, and New China Insurance increasing by 10%.
Mainland securities stocks also experienced a rise, with CITIC Securities up 9%, CICC rising by 9%, China Galaxy increasing by 7%, Huatai Securities up 7%, and GF Securities rising by 6%.
Auto stocks also surged, with Weilai increasing by 9%, Xiaopeng Motors up 12%, Li Auto rising by 5%, BYD up 2%, Geely Automobile increasing by 8%, Great Wall Motor rising by 5%, and GAC Group increasing by 2%.
Technology stocks also saw a boost, with Bilibili increasing by 12%, Tencent Holdings up 6%, Alibaba rising by 6.2%, Kuaishou up 8%, and Meituan increasing by 7.8%.
The industries with the highest gains included consumption, building materials, cement, metal mining, infrastructure, and machinery and equipment, although some power stocks experienced a decline.
Analysts from GF Securities believe that this is the time for Hong Kong stocks to fight back, stating that the market has priced in too many pessimistic expectations. They emphasize the flexibility of Hong Kong stocks during this round of risk-on sentiment and the opportunity for policy support to determine the timing and intensity of the cycle reversal. They see the overseas capital expenditure cycle peaking, signaling stronger domestic growth and potential improvements in exchange rate changes. Thus, they advocate for maintaining Hong Kong stocks as a favorable investment opportunity.
This article is from Investing.com and can be accessed on their website or through their app.