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Hong Kong stocks rise to 10-month highs after China’s property rescue measures
- Hong Kong’s benchmark index extends gains on Monday after advancing for four straight weeks, the best winning streak since the opening month of 2023
- Nomura analysts say markets would need to exercise more patience as the cleaning-up process in the property sector will be challenging
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Hong Kong stocks climbed to a 10-month high as Beijing’s latest efforts to salvage the beleaguered property sector boosted sentiment, with some analysts advising caution as cleaning up the sector would be a challenging task.
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The Hang Seng Index edged up 0.4 per cent to 19,636.22 at close on Monday, the highest level since August 1. The Tech Index gained 0.6 per cent while the Shanghai Composite Index jumped 0.5 per cent.
Electric vehicle maker BYD jumped 1.98 per cent to HK$227, peer Li Auto advanced 4.2 per cent to HK$99.90 and Geely Auto added 4.1 per cent to HK$10.64. E-commerce platform JD.com gained 2 per cent to HK$136.80 and gaming firm NetEase rose 1.3 per cent to HK$164.90.
The People Bank’s of China on Friday announced some of the most aggressive measures yet to stimulate the property sector, including a 300 billion yuan funding to clear excess housing inventory, lowering the minimum mortgage down payment requirements and removing the national floor for mortgage interest rates.
“We believe Beijing is headed in the right direction with regard to ending the epic housing crisis,” Nomura economists including Ting Lu said in a note on Monday. Still, markets would need to exercise more patience as the cleaning up process will be challenging, they added.
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