Chinese shares listed in Hong Kong saw a significant surge on Wednesday as traders came back from a public holiday, riding on the wave of stimulus-induced optimism.
The Hang Seng China Enterprises Index rose by up to 5.5%, extending its winning streak to 13 consecutive days, marking the lengthiest streak since January 2018.
The property developers sector led the gains, with a sector gauge skyrocketing by as much as 30%, while a brokerage shares index surged by 22%. Mainland Chinese markets, however, remained closed until October 8 for a week-long public holiday.
Meanwhile, top gainers among the Chinese brokerage shares during the trading session on Wednesday are as follows:
China Merchants Securities Co Ltd (HKG: 6099) surged by 42.86% to HKD13.00.
Guolian Securities Co Ltd (HKG: 1456) soared by 28.71% to HKD5.47.
Guotai Junan International Holdings Ltd (HKG: 1788) increased by 36.36% to HKD1.80.
Shenwan Hongyuan HK Ltd (HKG: 0218) rose by 112.05% to HKD1.76.
The prolonged rally is fueled by positive sentiment surrounding China’s economy and risk assets following the recent introduction of various stimulus measures by authorities.
These initiatives include interest rate cuts, increased liquidity for banks, and support for stock market liquidity. Furthermore, four major cities have relaxed home-buying restrictions, and the central bank has taken measures to reduce mortgage rates.
Investment strategist Billy Leung from Global X Management in Sydney noted that the market rally signifies a significant shift in investor positioning, with hedge funds and mutual funds, previously underexposed, now showing increased interest in Chinese assets.
