Hong Kong Defies Predictions As Hang Seng Index Surges Past 19,000 In Bull Market

Hong Kong is showing resilience by proving its harshest critics wrong. A significant surge in the local stock market over the past three months indicates that global investors are returning, challenging the notion that the city’s best days are behind it. 

The Hang Seng Index closed at 19,115.06 on Monday, reaching a level not seen since August. The index has surged by 27.8% from its low on January 22, placing it firmly in a technical bull run and establishing it as the top performer among major global equity benchmarks. 

The rally boosted the stock market’s capitalization by over $1 trillion (HK$7.82 trillion). Investors were encouraged by the policy report from China and portfolio rebalancing efforts, as fund managers sought better value and moved away from overpriced markets elsewhere. 

Jason Chan, a Senior investment strategist at the Bank of East Asia, stated that support measures for local capital markets have boosted confidence, and the economic data has shown more signs of stabilization. Additionally, the market still has room to grow, supported by corporate earnings and financial data. 

Meanwhile, Beijing introduced five measures to boost investor confidence in April, including easing eligibility criteria for exchange-traded products in the Stock Connect scheme. In addition, in the property market, more local governments have lifted buying restrictions, revitalizing the shares of many struggling developers. 

In today’s trading session, Chinese markets remained flat ahead of the anticipated announcement by the Biden administration regarding the increased tariffs on Chinese imports. At press time, the Hang Seng Index went down by less than 0.1% closing at 19,096.65, while the Shanghai Composite similarly went down by less than 0.1% closing at 3,147.54.