Hong Kong Stock Market Rises for Ninth Consecutive Day, Reaches Record High
Hong Kong’s Hang Seng Index rose for the ninth consecutive day on Friday, reaching a record high of 18,475 points. This marks the longest rising trend since 2018, with the index showing signs of entering a technical bull market. The upward trend comes as China’s economy stabilizes and Beijing introduces financial policies to benefit Hong Kong.
The positive momentum in the stock market was driven by a surge in technology stocks. JD.com saw a 5% increase, Tencent rose by 1%, Alibaba jumped up by 4%, and Meituan rose by 0.5%. Additionally, gaming stocks received support from the influx of tourists during China’s May Day Golden Week. Galaxy Entertainment, Sands China, Wynn, and MGM all saw significant increases.
In a recap of the week’s performance, the Hang Seng Index rose by 824 points, setting a new record for the longest consecutive rise since 2018. This turnaround comes after a period of weakness in the Hong Kong stock market, with the index falling to over 14,000 points earlier this year.
The recent rebound in Hong Kong stocks can be attributed to China’s improving economy and the central government’s favorable policies towards Hong Kong. The China Securities Regulatory Commission’s announcement of new cooperation measures with Hong Kong has further boosted confidence in the market.
Despite the positive outlook, analysts urge caution for retail investors, warning against following foreign investors’ stock purchases. Shao Zhiyao, a veteran investor, predicts that Hong Kong stocks will hover between 17,000 and 20,000 points in the next six months. Foreign investors, who were previously underweight in Hong Kong stocks, have begun to add positions due to China’s improving economic prospects.
As the game between China and the United States intensifies, the future direction of Hong Kong stocks remains uncertain and may depend on foreign capital. Retail investors are advised to proceed with caution and not buy too closely in case of potential sell-offs by foreign investors.
Overall, the Hong Kong stock market’s recent performance has been encouraging, with signs pointing towards continued growth in the coming months. Investors are advised to stay informed and make careful investment decisions in light of the evolving market conditions.