Chinese stocks surge as Premier Li Qiang signals ‘forceful’ measures to halt trillion-dollar market rout

Hang Seng Index records biggest one-day gain in more than two months, rebounding from the lowest level since October 2022

Market rout this year has erased more than US$1 trillion of capitalisation from exchanges in the mainland and Hong Kong, according to Bloomberg data

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People walking outside the Exchange Square in Central, Hong Kong with tickers showing stock prices on December 7, 2023. Photo: Li Jiaxing

Published: 9:59am, 23 Jan 2024Updated: 2:41pm, 24 Jan 2024

Corrected [2:39pm, 24 Jan, 2024]

[2:39pm, 24 Jan, 2024]
Corrects India's ranking as Asia's third largest market in the first paragraph

Stocks in Hong Kong and mainland China surged, halting a US$1 trillion rout this month after Premier Li Qiang called for “forceful” measures to stabilise prices and calm investors. Authorities are closely monitoring market swings after India overtook Hong Kong as Asia’s third-largest equity market.

The Hang Seng Index jumped 2.6 per cent to 15,353.98 on Tuesday for its biggest one-day gain in more than two months, rebounding from the lowest level since October 2022. The Hang Seng Tech Index rallied 3.7 per cent, while the Shanghai Composite Index climbed 0.5 per cent from near a four-year low.

Tencent surged 3.7 per cent to HK$272, Alibaba Group advanced 3.4 per cent to HK$67.65 and e-commerce peer JD.com rallied 4.7 per cent to HK$86.35. EV maker BYD jumped 3.2 per cent to HK$197, and rival Li Auto surged 6.5 per cent to HK$111.50. China Resources Land rallied 8 per cent to HK$22.15, and peer developer Longfor surged 9.2 per cent to HK$8.65.

Elsewhere, HSBC gained 1.2 per cent to HK$59.20. China’s top lenders, ICBC and Construction Bank, each strengthened by 2 per cent to HK$3.61 and HK$4.41, respectively. Insurer AIA Group surged 3.6 per cent to HK$61.25.

Premier Li called on officials to “vigorously improve the quality and investment value of listed companies, increase the entry of medium and long-term funds into the market, and enhance the inherent stability of the market,” Xinhua News Agency reported, after he chaired a State Council meeting in Beijing on Monday.