Hong Kong Stocks Surge After China's Economic Measures

Hong Kong's Hang Seng Index surged to its highest level since May, climbing 1.3% to 19,379.00, supported by a strong rally in tech stocks and renewed investor optimism following China's comprehensive stimulus package. The stimulus, the largest since the pandemic, includes rate cuts and eased mortgage requirements aimed at revitalizing the struggling economy and addressing the property sector crisis. Analysts noted that while the measures have boosted market sentiment, they may not be sufficient for a full economic turnaround, with some calling for further fiscal support. The People's Bank of China cut lending rates to enhance liquidity, and major companies like Alibaba and JD.com saw significant gains. Despite the positive momentum, the Hang Seng Tech Index experienced a slight slowdown in afternoon trading, reflecting ongoing market volatility. Overall, the combined efforts from Beijing have restored over $232 billion in market capitalization to local stocks, highlighting the potential for continued growth in the near term.