The Hang Seng Index, which takes into account the 82 largest companies by capitalization on the Hong Kong Stock Exchange, grew by 2.21% at the end of trading on April 24, to 17,201.28 points. At the moment, the benchmark rose by 2.3% to 17217.86 points. The previous time the index rose above this value was on November 29, 2023.
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Index growth
Among the companies included in the index, Aia shares rose in price by 3.49% Group, by 5.57% – shares of China Life Insurance. Tencent shares added 3.55%, Alibaba – 3.87%, Xiaomi – 3.87%.
According to MarketWatch, the rally is associated with a sharp change in investor attitudes towards shares of Chinese companies. Market sentiment was impacted by improving economic conditions in China in recent weeks and steps taken by the authorities to improve Hong Kong's status as a financial center.
Earlier, the index hit its local lows as Chinese and foreign investors were concerned about weak the growth of the Chinese economy, the real estate crisis and political tensions between Beijing and Washington.
The Hang Seng China Enterprise Index at the end of trading on April 24 increased by 2.45% to 6100.22 points. Bloomberg wrote earlier in April that technically the benchmark had entered a “bull” market for the first time since the Chinese authorities abandoned strict anti-Covid restrictions.
Bloomberg noted that some investors are beginning to believe that there will be government support enough to boost economic growth.
Late last week, China's securities regulator said it would step up its support for IPOs. In China, fundraising through initial public offerings has been declining for four years in a row. Proceeds from IPOs in 2023 fell to their lowest level in two decades.
