Hong Kong Market surges on Beijing Stimulus

25 Aug 2022 , 05:07 PM

Hong Kong shares pocketed hefty gains on Thursday, 25 August 2022, with Hang Seng Index rebounding from a five-month low in the previous day, as risk appetite returned after Beijings latest efforts to stimulate the economy by pledging to roll out supportive policies, including 300 billion yuan in support for policy banks to fund infrastructure projects and 200 billion yuan of special bonds to assist electricity producers in boosting output. The upbeat sentiment at home overshadowed concerns of more tightening by the US Federal Reserve as Fed Chairman Jerome Powell is set to give a speech on Friday, providing guidance into the US central banks rate hike path. At closing bell, the benchmark Hang Seng Index surged 699.64 points, or 3.63%, to 19,968.38. The Hang Seng China Enterprises Index was up 283.20 points, or 4.31%, to 6,848.89. Market trading was halted in morning and it resumed in the afternoon after a halt due to extreme weather conditions stemming from typhoon Ma-on. Sentiment in the local equities market improved after Chinese Premier Li Keqiangs pledge that the government will deploy more successive policies and measures to stabilize the economy. Authorities will increase the quota of policy-based development financial instruments by 300 billion yuan ($44 billion) and fully use the more than 500 billion yuan balance of special bonds, Li told an executive meeting of Chinas State Council on Wednesday.Powered by Capital Market – Live News