Hong Kong stocks soar to 14-month high in stimulus rally as Xi Jinping vows more support

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Three-day run brings gains from a recent low point in August to 19.7 per cent, nearing bull market territory

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The Exchange Square complex, which houses the Hong Kong stock exchange, pictured on September 17, 2024. Photo: Bloomberg

Jiaxing Li

Published: 10:35am, 26 Sep 2024Updated: 5:08pm, 26 Sep 2024

Hong Kong stocks soared for a third day, hitting a 14-month high to approach bull market territory, as a stimulus rally gathered more steam after Chinese President Xi Jinping vowed more support for the economy.

The Hang Seng Index jumped 4.2 per cent to 19,924.58 on Thursday, the highest level since August last year. The Tech Index surged 7.3 per cent, while the Shanghai Composite Index added 3.1 per cent to reclaim the 3,000 floor for the first time since June.

E-commerce giant Alibaba Group Holding advanced 7 per cent to HK$97.75, rival JD.com surged 10 per cent to HK$138.50 and search-engine operator Baidu rallied 7.9 per cent to HK$95.75. Sportswear maker Li Ning jumped 15 per cent to HK$17.76, and hotpot chain Haidilao gained 18 per cent to HK$17.18.

The city’s benchmark index has advanced 13.8 per cent in a three-day winning run, restoring more than US$232 billion of market capitalisation to local stocks, according to Bloomberg data. The run has brought gains from a recent trough in August to 19.7 per cent, a stone’s throw away from entering a bull market.

Trading volume surged to HK$302 billion on Thursday, the highest since March 2022.

Momentum increased in the afternoon trading session on Thursday after China’s top leaders, led by President Xi Jinping, vowed to save the private economy, stabilise the property sector and ensure necessary fiscal expenditures, Xinhua reported.