Chinese Stocks Soar 7% In Hong Kong On Stimulus Bets

Chinese stocks listed in Hong Kong saw their biggest jump in nearly two years, driven by optimism surrounding economic stimulus measures.

Investor sentiment toward Chinese equities has dramatically improved since the start of last week, following a series of stimulus measures, including interest rate cuts and liquidity support for stocks. I Photo: Stang_wm Wikimedia Commons

The Hang Seng China Enterprises Index surged as much as 8.5% before closing 7.1% higher, marking a 13-day streak of gains, Bloomberg’s Charlotte Yang and Winnie Hsu reported.

The rally was led by property developers, with a sector index skyrocketing as much as 47%, and brokerage stocks following suit with a 35% increase — both record intraday moves.

Markets in mainland China remain closed until Oct. 8 for a holiday. Bo Pei, an equity research analyst at US Tiger Securities Inc., commented, "I think the bull market could last for three to six months. I’m personally quite confident."

Investor sentiment toward Chinese equities has dramatically improved since the start of last week, following a series of stimulus measures, including interest rate cuts and liquidity support for stocks.

Four major Chinese cities also eased restrictions on home purchases, and the central bank lowered mortgage rates.