Hang Seng Index extends rally to 32-month high before China returns from Golden Week break

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Hong Kong stocks have gained more than 9 per cent since September 30, when the mainland’s markets closed for the ‘golden week’ holiday

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Hong Kong stocks are firmly in the grip of a bull run since late last month. Photo: Dickson Lee

Jiaxing Li

Published: 10:55am, 7 Oct 2024Updated: 5:39pm, 7 Oct 2024

Hong Kong stocks extended a three-week rally to hit a 32-month high, after top US banks Citigroup and Goldman Sachs joined the China stock-buying chorus.

Investors are now looking forward to a press conference from Chinese authorities on Tuesday, where more stimulus measures could be announced and lift sentiment further.

Mainland Chinese markets are set to reopen on Tuesday after the “golden week” holiday. In their absence, the Hang Seng Index has gained 9.3 per cent since September 30.

The city’s main stock index jumped 1.6 per cent to 23,099.78 on Monday, closing above the 23,000-mark for the first time since February 2022.

Stocks rose after Citigroup and Goldman Sachs became the latest China bulls on Wall Street, following peers like Morgan Stanley and UBS in raising their targets for Chinese stocks after Beijing’s stimulus provided a boost to the stock markets.

06:57

Boom or bust: how sustainable is China’s stock frenzy?

Investors are now betting that China is not done with its stimulus to rescue the market. The National Development and Reform Commission on Tuesday will hold a press conference to discuss the implementation of a policy package and economic growth, which is set to add momentum to the central bank’s surprise measures two weeks ago.