Hong Kong stocks advance on additional Chinese measures to support market, Evergrande liquidation shocker limit rises

The Hang Seng index rose 0.8% to 16,077.24 after surging as much as 1.9% on Monday. The index has rebounded 4.2% from a 15-month low last week. The tech index rose 0.5%, while the Shanghai Composite Index fell 0.9%.

Longfor rose 0.3% to HK$9.47, while China Resources Rand rose 2.9% to HK$24.90, after the city of Guangzhou in southern Guangdong province lifted restrictions on the purchase of large homes.

“The market remains in a recovery phase as sentiment recovers,” CICC strategist Kevin Liu said in a note on Sunday. “A true trend reversal requires more targeted policy catalysts,” he added.

Hong Kong High Court orders Evergrande Group to liquidate

Still, Hong Kong’s stock benchmark index has fallen about 4.2% so far this month, heading for its worst January since falling 6.7% in the first month of 2020. A court ruling forcing debt-laden Chinese developer Evergrande into liquidation capped stock price gains.

US lawmakers move to ban military contracts with Chinese biotech companies

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China’s GDP: Beijing’s long to-do list for economic growth in 2024

China’s GDP: Beijing’s long to-do list for economic growth in 2024

Sentiment is likely to be cautious this week as further weak economic data is likely to be released. Economists tracked by Bloomberg ahead of the release of the official report on January 31 said China’s manufacturing industry was likely to remain in contraction territory in January for the fourth consecutive month. Last week’s report showed industrial profits fell by 2.3% in 2023, the second year of decline. showed that.

The Fed is expected to keep its key interest rate unchanged at its first policy meeting of the year later this week, according to odds calculated from federal funds futures contracts compiled by CME Group.

Major markets in Asia rose. South Korea’s Kospi rose 0.9%, Australia’s S&P/ASX 200 rose 0.3% and Japan’s Nikkei 225 rose 0.8%.