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Hong Kong stocks rebound as funds bet on more Chinese aid and intervention to restore market confidence

The Elite Times TeamBy No Comments3 Mins Read

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Hong Kong stock The firm is planning a second day of victory in the Year of the Dragon by erasing losses, as local fund managers hope the Chinese government will take stronger measures to restore investor confidence. Asia’s biggest asset managers are in no hurry to return to the market, according to the survey.

The Hang Seng Index rose 0.4% to 15,947.64 at the midday trading break, adding to Wednesday’s 0.8% rise. The tech index rose 0.6%, reversing a 0.7% decline, following the previous day’s 2.2% rise. Mainland China’s financial markets will be closed this week for the Spring Festival holiday.

Li Ning rose 4.2% to HK$19.98, Alibaba Group rose 0.8% to HK$71.40 and e-commerce rival Jingdong Market rose 1.9% to HK$90.75. EV maker Li Auto rose 0.2% to HK$119.80, while home appliance maker Haier Smart Home rose 0.8% to HK$23.80.

“China has the tools to be more proactive in risk management,” Li Mingxue, Asia and Greater China equity investment specialist at BNP Paribas Asset Management, said of the economic situation. “Even if China is not completely out of the woods, we believe the risk-reward relationship is becoming more favorable.”

Investors want further action to strengthen the economy and markets, Pictet Asset Management and Saxo Markets said. intervention And policy support will not be enough to sustain the recovery after US$5 trillion has been drained over the past three years.

Investors hope Chinese government will do more to keep stock price up $380 billion

Hong Kong Treasurer Paul Chan Mopo said the market outlook was positive This is because the Hang Seng Index did not lose to the Year of the Dragon. He said on Wednesday that an improving Chinese economy and the possibility of interest rate cuts this year “will provide a positive atmosphere for investment sentiment and asset markets.”

Stocks had plunged earlier this week after Thursday’s official report showed economic growth unexpectedly contracted last quarter, sending Japan into a technical recession. Robust U.S. inflation data also tempered expectations for the Fed to cut interest rates at its March and May meetings, according to Federal Funds Futures.

In a February 13 report based on a survey of people with US$331 billion under management from February 2 to 8, Bank of America found that in Asia, the Chinese government is poised to stave off defeat. , said regional funds remain hesitant to chase Chinese stocks despite efforts to repair market confidence. of assets.

Year of the Dragon: Hansen tries to earn 20,000 points as funds seek to end pain

For the first time since it began conducting regular surveys 17 months ago, more survey participants expect the economy to weaken rather than strengthen over the next year, the U.S. Bank said. Most were willing to leave or avoid the market, with 15% looking to reduce the risk of a rebound, the report said.

Other major markets in Asia were also strong. Japan’s Nikkei Stock Average rose 0.9%, Australia’s S&P ASX 200 index rose 0.7% and South Korea’s Kospi index rose 0.1%.

Additional reporting by Aileen Chuang

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