Hang Seng Index Enters Bull Market, Boosted By Key Stocks

The Hang Seng index has greatly recovered this year as investors seized the opportunity to buy the dip in Chinese equities. Now it finally entered a bull market, surging over 28% from its lowest point this year, and is now hovering near its highest level since August 2023. 

Aside from the Hang Seng index, the China A50 is also experiencing a strong bull market, which surged over 18% from its lowest point this year. Similarly, other popular indices such as the Shanghai and Shenzhen composites, have also seen massive gains. 

For the longest time, China has become the world’s largest manufacturer, capturing significant market share in key sectors such as clean energy and electric vehicles. Companies like BYD have surpassed Tesla to become the largest EV manufacturer globally. 

Today’s economic data from China captured investor attention, focusing on fixed asset investment, unemployment, retail sales, and industrial production figures. 

In April, industrial production rose by 6.7% year-on-year, following a 4.5% increase in March. This exceeded economists’ forecast of a 5.5% rise. Retail sales went up by 2.3% year-on-year in April, following a 3.1% increase in March. Economists had anticipated a 3.8% rise in retail sales.

Fixed asset investment also grew by 4.2% year-on-year for the YTD, compared to a 4.5% rise in March. Economists had projected a 4.6% increase. Last month, the unemployment rate unexpectedly dropped from 5.2% to 5.0%

These economic indicators point to an improving demand environment in the manufacturing sector, aligning with recent Caixin Manufacturing PMI data. 

The Caixin Manufacturing PMI increased from 51.1 in March to 51.4 in April. Last month’s survey highlighted a notable surge in overseas demand, with new orders growing at the fastest rate in nearly three and half years. 

At press time, the Hang Seng Index was up by 0.50% closing at 19,474.